decreasing term insurance
The decreasing term insurance has its face value reduced as the policy ages.
decreasing term insurance
decreasing term insurance
need to find out how much my life insurance policy is worth
Decreasing term life insurance does not usually have any cash value. Decreasing term life insurance is life insurance coverage in which the face amount of a term life insurance policy declines by a certain specified amount over a specific number of years. For example, the initial face amount of coverage of a $200,000 decreasing term life insurance policy decreases by $20,000 each year, until after 10 years the face value of the policy equals zero. The premium does not decrease over the term of the policy.
What's the face value of the policy?
Face value is the amount of life insurance that is stated on the front page (declarations) FACE of the policy. You might get paid less than that if you have policy loans. More if it's accidental death. Some policies pay dividends.
Yes, you can out live your Insurance Policy. When the amount of the premium paid equals the face amount of the policy (the death benefit), the policy matures and you get all your money back.
face amount reduces and the policy is made for paid-up value
In 2002, the average new individual life insurance policy was $129,459. Source: American Council of Life Insurers
Universal Life insurance has variable premiums built into the policy (whether traditional Universal Life or Variable Universal Life). However, many people end up paying less than they need to and the policies don't work out the way they planned. If you do a Universal Life policy, make sure you have a trustworthy agent. As for variable face amounts, some term policies have built in options to enable increasing the face amount of the policy at certain points in time. This may also be an optional rider on some policies, but there is a cost to it. This can be a good idea if budget doesn't allow for the appropriate face amount. Often insurance companies will allow you to reduce the face amount of a policy and get a reduced premium. Permanent insurance (Whole Life and Universal Life) have variable face amounts based on dividends and interest that may add to the face amount over time. Feel free to ask more. Brian Lombardo, CPA, Agent
Decreasing term life insurance usually purchased to cover a mortgage loan for whatever the loan period is. This type of coverage is not available by most life insurance companies.