What is decreasing Term life insurance policy?
A Decreasing Term policy decreases over the life of the term, which could be 10, 15, 20, 25, 30 years. Or it could be decreasing to age 65. A Decreasing Term policy is designed to cover a financial need or debt, such as a mortgage. The principle loan decreases as you make payments. The Decreasing Term will also decrease along with the principle, and will expire at the end of the term. This insurance would be called Mortgage Decreasing Term, designed to decrease with the principle, based on the interest rate of the loan. This type of policy could also be used by a business owner to cover a business loan which is financed over a period of time. Decreasing Term is sometimes also used to provide an income to a surviving spouse, based on life expectancy. As time goes by, the less amount of coverage one would need for an income; taking into account that the surviving spouse also has less time to live. Although the amount of insurance decreases, the premium remains the same. As the insured ge
