What is decreasing term life insurance?

Decreasing term life insurance, sometimes called mortgage insurance, provides temporary coverage for a specific financial need like an outstanding debt or mortgage. It typically costs less than level term life insurance because the death benefit decreases to account for the fact that the debt obligation will likely lessen over time.

What is the difference between a level and decreasing term life insurance?

While a level term life insurance policy has a face value that remains constant over the life of the policy, decreasing term insurance has a death benefit that decreases either monthly or annually. However, the two policies are similar, in that they both have constant premiums and term lengths that typically span five to 30 years.

What is a declining term life insurance policy?

Email us at [email protected]. Decreasing term life insurance has a coverage amount that decreases over time. Most people get better value from a traditional level term policy.