DEFINITION of 'Adjustment Income'

Income paid to the dependent(s) of a primary wage earner in the event of his or her death. These funds, usually provided through life insurance policies, are intended to provide financial support as the beneficiary adjusts to becoming self-sufficient.

BREAKING DOWN 'Adjustment Income'

An example of adjustment income would be funds provided to a widow upon the death of her spouse to allow time to recover emotionally and receive career counseling and job training if necessary.

RELATED TERMS
  1. Additional Death Benefit

    An amount that is paid to the beneficiary of a life insurance ...
  2. Death Benefit

    The amount on a life insurance policy or pension that is payable ...
  3. Life Insurance

    A protection against the loss of income that would result if ...
  4. Acceleration Life Insurance

    A type of policy that pays a portion (typically 25\% or 50\%) ...
  5. Primary Beneficiary

    A beneficiary in a will, trust or insurance policy that is first ...
  6. Add To Cash Value Option

    A common benefit option on life insurance policies wherein the ...
Related Articles
  1. Managing Wealth

    Use Life Insurance to Help Those With a Disability

    Why and how to use permanent life insurance to help provide for a family member with a disability or special needs
  2. Financial Advisor

    Advising FAs: Explaining Life Insurance to a Client

    Life insurance was initially designed to protect the income of families, particularly young families in the wealth accumulation phase, in the event of the head of household's death.
  3. Financial Advisor

    How to Handle Client Beneficiary Designations

    Beneficiary designations are a critical financial planning step that can be easily overlooked. Here's how to ensure they are properly done.
  4. Insurance

    Life Insurance: How Long Does It Take To Get Paid?

    How to file for a life insurance payout – and how long it takes to receive it. Plus, new ways to plan for payments that provide an income stream.
  5. Investing

    Making A Living On Death Bonds

    Find out if these macabre bonds are just the new blood your portfolio needs.
  6. Insurance

    6 Steps to Determine Your Life Insurance Needs

    Use these basic calculations for an estimate of how much life insurance you should get.
  7. Insurance

    Getting Your (Insurance) House in Order

    From starting a family to retirement, insurance can play a role in taking care of financial needs. This piece looks at some of the choices you can make.
Hot Definitions
  1. Aggregate Demand

    The total amount of goods and services demanded in the economy at a given overall price level and in a given time period.
  2. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  3. Blue Chip

    A blue chip is a nationally recognized, well-established, and financially sound company.
  4. Payback Period

    The length of time required to recover the cost of an investment. The payback period of a given investment or project is ...
  5. Collateral Value

    The estimated fair market value of an asset that is being used as loan collateral. Collateral value is determined by appraisal ...
  6. Fiduciary

    A fiduciary is a person who acts on behalf of another person, or persons to manage assets.
Trading Center