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What is decreasing term life insurance?


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Answered 2011-09-13 15:25:18

Decreasing term life insurance is a variety of term insurance in which the death benefit decreases on a scheduled basis.

One of the features of term insurance is that, at least when compared to permanent insurance (whole-life), it is relatively inexpensive. In the early years of a decreasing term policy, the death benefit will be the face amount of the policy when purchased. Thereafter, as years pass, the death benefit will decline. Insurance of this type may be purchased when the insured has a large financial obligation to fund, such as child-rearing expenses, and needs a great deal of coverage in the early years to protect against adverse financial implications of his/her death.

The most common use for decreasing term life insurance is to cover a mortgage or other type of loan.

it mean going up or Dow one of those

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Is there cash value in decreasing term insurance?

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 is a decreasing term life insurance policy?

A decreasing term life insurance policy is one that offers a steadily declinintg life insurance benefit as the years go by. This kind of policy is often called "mortgage protection" term life insurance and is often bought for a length of time that matches one's mortgage period.



What type of life insurance is often used as mortgage insurance?

The type of life insurance that is more than often used as mortgage insurance is known as decreasing term.


What kind of insurance would cover a mortgage in the event of a spousal death?

Credit life insurance, Mortgage insurance, or decreasing term insurance.


What does decreasing term insurance mean from the perspective of finance?

Decreasing term insurance means from the perspective of finance that it is annual and renewable. It gives a death benefit that decreases at a rate that has already been determined over the life of the policy.


What benefits should I expect from a decreasing term life insurance policy?

A decreasing term life insurance policy has the benefit of lower premiums. It also can be adjusted to provide exactly what coverage is needed (for example to cover a mortgage as the total amount due decreases over time).


Feature of term Policy in Life insurance?

The features of a term life insurance policy include the following: 1. Term options of 1-30 years, usually 10, 15, 20, or 30 year term polciies available. 2. Level or decreasing premiums available depending on the type of term plan. 3. Level or decreasing life insurance coverage amount depending on the type of term life pan. 4. Some term life policies offer a return of premium if you outlive the policy term.


The face value of which type of insurance is reduced over the life of the policy-?

The decreasing term insurance has its face value reduced as the policy ages.


Which type of insurance reduced over the life of the policy?

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.


When does the decrease in term life insurance begin?

If you are inquiring about decreasing term life insurance, the policy defines the level of coverage at various points in time. Often, this kind of life insurance is intended to correlate with pay-down of a debt. Therefore, as the debt reduces by payments toward it, the life insurance balance proportionately reduces.


What type of life insurance is used as mortgage insurance?

Usually a level term life insurance policy would be used for mortgage loan life insurance protection. Level term offers coverage for a duration of 10, 15, 20 or 30 years with a level premium and level amount of coverage provided by the policy for the entire duration of coverage. Another option is decreasing term life insurance where the premiums remain level but the amount of life insurance coverage decreases each year throughout the life of the term insurance policy.


Where can I get the best rates on decreasing term life insurance?

The best rates can usually be located on the internet. That way you cut out the middleman, the salesman.


Does Prudential Life Insurance offer term life?

Prudential Life Insurance offers several different type of life insurance, including term life insurance. They offer complete term insurance or supplemental term insurance that can be added on top of any other insurance you may have.


Dose the amount life insurance change after a certain age?

A change in the amount of life insurance provided by your life insurance policy is determined by the coverage you have. A permanent life insurance policy usually provides the same amount of life insurance protection for your entire lifetime, as long as you pay the premiums. A term life insurance policy lasts for a temporary period of time. Usually, term life policies are issued for 1-30 years. A 10 year term life insurance policy provides protection for 10 years. if you outlive your policy term, the coverage expires. A level term life insurance policy provides coverage and premiums that remain the same each year for the entire term of your policy. A decreasing term life insurance policy provides premiums that remain the same each year, but the amount of life insurance decreases each year until the end of your policy term. There are other term life insurance plans that may provide less coverage after a certain age, or your policy term expires after a certain age.


What is the difference between term life insurance vs whole life insurance?

A term life insurance is during the insurer's life only. When he or she is gone, then the insurance ends. The whole life insurance on the other hand has what the term life insurance covers plus more.


Does all life insurance have no physical term?

No, term life insurance has a term, hence the name.


What is the difference between life insurance and term life insurance?

Life insurance is a more general concept that may refer to either whole life insurance or term life insurance. Whole life insurance gathers value the longer you have it, whereas Term life insurance does not obtain any value that you may use before you die. Term life insurance only pays out when you die.


Is there level premium decreasing term life insurance for those age 87?

All insurance companies I have seen or worked with will not issue a new policy after you turn 80 years old.


What are the benefits of purchasing term assurance?

Term life insurance will protect the policyholder should his or her life end unexpectedly. Term life insurance is often the cheapest of all available insurance. Usually, term life insurance can be converted to whole life insurance during the term. Whole life insurance will never expire and the rates will remain constant throughout the policyholder's life.


What do you mean by the term life insurance?

Term life insurance is a form of temporary life insurance that provides coverage for a specific number of years. Term life insurance is available for 1-40 years, depending on your health and age. Term life insurance is usually purchased for 1, 15, 20 or 30 years. Term life insurance builds no cash value within the policy. Term life insurance is "Pure Protection". You pay only for the life insurance. If you outlive your policy term, the coverage expires. Level term life insurance is the most common form of term life insurance. Level term offers premiums and coverage amount that remain the same each year for the entire term of your policy.



Is term insurance the most expensive type of life insurance?

No, term insurance is not the most expensive type of life insurance. Usually, term insurance is the most affordable type of life insurance. Term life insurance usually costs 2-3 times less than permanent life insurance. Why? because term life is temporary coverage, usually for 1-30 years, and it builds no cash value inside the policy. See for yourself: Free term life insurance quotes at QualityTermLife's website.


What is the difference between term and permanent life insurance?

Term life insurance if only for the life of the coverage holder, once deceased the amount is paid to the beneficiary. Permanent life insurance, known as whole life insurance, combines term life insurance with an investment option.


What is the difference between whole life insurance versus term life insurance?

Term life insurance is an insurance that is set for a specific time period, for example, one can obtain term life insurance for 30 years. Whole life insurance covers one from application to death.


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