Adjustment Income

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.