Decreasing Term Life Insurance

What is decreasing term life insurance? It is one of the many life insurance policies available, but with a twist. Decreasing term life insurance generally starts out with a high amount of the policy value, and a low premium (in some cases, a decreasing term life insurance quote may be lower than a typical term life policy quote.) The premium stays the same throughout the policy, but the value of the policy decreases over time.

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You might think that getting a decreasing term life insurance quote is a waste of time. After all, does it really make sense to get a decreasing term life insurance policy, when its face value may typically be lower as time goes on?

But there may be a certain amount of sense in getting a decreasing term life insurance quote and checking out a decreasing term insurance policy. You see, this policy could work well if you had a mortgage that needed to be paid. If you were to die during the beginning of the policy, your beneficiary could use the benefits to pay for some or all of a large purchase (like a home). If you were to die at the end of the decreasing term insurance policy, your spouse would typically not get as much money to pay the mortgage, but as time goes on, the monthly mortgage payment may be smaller.

In fact, decreasing term life insurance is also sometimes called mortgage protection insurance. This could be something to help protect your beneficiaries financially in the future, and may help give you some peace of mind.

Decreasing term insurance typically has no cash value – cash value is something that is only included with whole life insurance policies. Decreasing term insurance might not be a policy that will see you into your old age – it is really designed to help pay off a large purchase, like a mortgage in the event of your death.

So depending on your life situation, it could make sense to check out a decreasing term life insurance quote. That being said, you may want to be realistic about your situation before getting a decreasing term life insurance quote. Decreasing term insurance may generally not be a substitute for a sound retirement plan. So if you get a decreasing term life insurance quote, you many only wish to use it to help pay for a long-term debt, such as a mortgage.

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