What is Decreasing Term Insurance?
Decreasing term insurance is a product that provides level premiums with a decreasing death benefit. It is also sometimes referred to as Mortgage Insurance , as banks market this product for mortgage protection. It is a great money earner for the banks but not for the insured. For every year that you are paying the insurance premium to the bank, your death benefit goes down. So the bank is on to a win-win situation, they get money from you each month and at the end of the contract they pay you less than the sum you calculated you needed as death benefit!
