Decreasing Term Life Insurance
Decreasing Term Life Insurance, or Mortgage Life Insurance as it is frequently referred to, offers coverage to protect remaining family members and pay off large loans on items such as houses, businesses and any other loans where payments decrease over the years.
How Decreasing Term Life Insurance Policies Work
It should be noted these additional options vary from company to company. Any questions arising should be asked and full answers received before any policy is entered into. These extra features do come at a cost, but may be worth the extra premium since some offer a lot more coverage for relatively small increases in payments.
There are three main options to who is insured on a Decreasing Term Life Insurance policy. Each offers unique benefits to the policy holder. Which one is best for you can be determined by consultation with your family members and Insurance provider.
Single Life Decreasing Term Life Insurance
The policy ends in payment on the death of the holder. This option is often used to protect the remaining spouse or family members by ensuring sufficient funds are available to pay off the mortgage and cover their expenses.
Joint Life, First Death Decreasing Term Life Insurance
This policy expires when he first policy holder covered dies, protecting the other from debt by providing a lump sum to meet expenses. It may be used to cover funeral expenses or large loans.
Joint Life, First Survivor Decreasing Term Life Insurance
This policy will pay out a lump sum on the death of the second policy holder, and is often used as a way to transfer wealth in the form of inheritances.
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