form of life insurance coverage in which premiums remain constant for the life of the policy while the death benefit declines. Term insurance premiums usually increase every year as the policyholder ages, and the policy is re newed.
If there is less need for coverage because, for example, children have become self-sufficient, it may be prudent to decrease the amount of outstanding coverage.

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Next:	Decremental, Dedicated Capital (or value)

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Dictionary of Finance and Investment Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.

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