Just What Is Decreasing Term Life Insurance?

With ordinary term life insurance, the death benefit (also known as the amount of coverage) remains the same for the length of the term. If a person purchased a traditional term life insurance policy for a 30-year term for, say, 500,000 dollars, the death benefit would be 500,000 dollars whether he passed away a year after he bought the policy or 29 years after he bought the policy. A decreasing term life insurance policy, however, is slightly different.

As the name implies, the death benefit paid out for a decreasing term life insurance plan decreases over time. The premiums remain the same for the life of the policy, but the amount of coverage grows smaller over time. Decreasing term life insurance can be especially desirable for families with a mortgage.

Because mortgage payments decrease over time, the amount of money a family needs to earn each year also tends to decrease over time. Health care, schooling, vacations, and retirement may remain financial concerns, but mortgage payments become smaller and smaller each year. If your spouse's ability to pay off your mortgage is your primary concern when purchasing term life insurance, then decreasing term insurance may be right for you.

If you have any questions about this type of policy, or if you'd like to discuss which type of term life insurance policy is just right for you, call the experts at EFinancial. By calling 1-866-765-4296, you'll have an opportunity to speak with one of EFinancial's knowledgeable Customer Service Agents. Once you purchase decreasing term life insurance through EFinancial, an agent will be assigned to you personally; that way, you'll always have a familiar person to call with any questions or concerns.