How Does Decreasing Term Life Insurance Work?

Decreasing term life insurance is a type of term life insurance that provides coverage for a defined period, usually between five and 30 years. The death benefit amount that your beneficiaries can receive decreases a certain percentage each month or year (depending on the policy). Here’s how it works:

Policy DetailsExample
Policy Length30 years
Starting Death Benefit$300,000
Percentage of Decrease3.33% per year
Death Benefit After 10 Years$210,000 or 30% of the original death benefit

Decreasing term life is more affordable than other types of life insurance policies like whole life and universal life. It can provide security for decreasing expenses like mortgage, student loan, or business loan payments. This type of life insurance can also be a more affordable way to offer protection for children and family members who will depend on your income less and less as time passes.

It’s important to note that decreasing term life insurance isn’t available through all insurers. If you’re interested, you may need to shop around for life insurance to see who offers it. Consider a decreasing term life insurance policy if you have specific expenses or debts that you want to make sure are covered in case you pass away, and your beneficiaries won’t depend on your income long-term.

Overall, decreasing term life insurance is a great option for people who are looking for affordable life insurance to cover specific expenses or debts that will decrease over time. Make sure to do your research and shop around to find the best policy for your needs.

Burial Insurance Rates
We Sell Burial Insurance
  Cash Payout On Death
  Cash Value (Savings) While Living
...Without The Hassle
 NO Waiting Period
  NO Medical Exam
  NO Expiration
 NO Rate Increases