Adjustment Income

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Adjustment Income

In insurance, income paid to the survivors of a household's primary earner until they are able to make necessary lifestyle modifications. For example, suppose a husband works full time and makes $100,000 per year while a wife works part time and makes only $25,000 per year. If the husband dies, his life insurance policy may provide adjustment income over and above the death benefit until the wife can recover emotionally, find a full-time job, and make other changes.