What is a decreasing term life insurance policy?

A decreasing term life policy is very similar and may mirror the amortization schedule of a mortgage. Decreasing term life insurance is less expensive than traditional term or permanent life policies. Term life insurance is a form of coverage that provides a death benefit for only a certain length of 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 debts can a decreasing term insurance policy cover?

Auto, business, mortgage and personal loans are examples of debt obligations that a decreasing term insurance policy could cover. Parents with teenagers might also benefit from decreasing term life insurance, which can provide a large benefit early on to offset expected financial expenses or outstanding tuition obligations.