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Decreasing Term Life Insurance

Decreasing term life insurance is special form of life insurance that has very specific advantages.  If you came looking to get quotes  please fill out the form on the side of this page and we will be happy to help you get the right insurance for your needs.

Understanding Decreasing Term Life Insurance

Not as popular as regular term or universal life insurance, decreasing term life insurance has a very interesting feature in that the face value of the policy decreases at a predetermined rate.  You make the payments at the same rate over the predetermined life of the policy.  To give you a good example, you may decide you need a $200,000 decreasing term insurance policy.  It costs you $50 per month and the term is for thirty years.  Each year the original $200,000 decreases by six thousand dollars.  So at the end of the thirty years you have a very small death benefit.

Why Use Decreasing Term Life Insurance

Most people who use decreasing term life insurance are insuring themselves from a debt.  For this reason it is frequently called mortgage insurance.  A mortgage is a perfect fit for this type of insurance.  As the years go on the amount you owe on the mortgage decreases, so does the amount of coverage that you need.  So the policy matches what you currently owe on the mortgage.  This of course, would work for any type of debt.
Another use for decreasing term life insurance is someone who is able to accrue a steady amount for retirement.  As your nest egg accrues your need for insurance decreases and the payout for the insurance decreases.  It allows you to make sure that your spouse is covered no matter what happens to you, but not so much insurance that you need to keep one eye opened while you sleep.
You can get decreasing term insurance from almost any of the life insurance companies.  Although not often used it is a widely available type of life insurance.  If you are interested in other types of life insurance click here.
At TermLife360.com we are dedicated to helping you find the best life insurance for your needs.  If decreasing term life insurance is the best insurance for your particular situation then we will help you get the best rates from the companies that provide insurance in your area.  If you have any questions or if there is any way we can serve you let us know.

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