Is a Decreasing Term Life Insurance Right for You?
Every individual has a specific need for life insurance. Some people want a policy to cover their family's anticipated cost of living, including mortgage payments and college tuition, while others might have less of a need for life insurance down the road. A term life insurance policy where the death benefits decrease over the life of the policy may be the ideal life insurance solution for you.
Every insurer has specific types of life insurance policies they specialize in, so make sure you’re making your search efficient and effective by contacting an independent agent in the Trusted Choice® network. Find an agent today to discuss decreasing term life insurance quotes and get the right coverage for your needs.
Decreasing term life insurance is a life insurance option where the death benefits decrease on either a monthly or annual basis over the life of the policy. These policies are available with fixed premiums for terms ranging from 1 to 30 years. Because the death benefits decrease over time, these policies tend to be more affordable than a standard term life insurance policy.
A decreasing term mortgage policy can help you pay off your mortgage because the death benefits are specifically designed to decrease as you pay down the principal. A decreasing term mortgage life insurance policy specifically covers the outstanding balance on a mortgage. The death benefits reduce at a set rate, either monthly or annually, over the term you purchase. This type of plan is ideal for providing sufficient death benefits to cover the outstanding balance on your mortgage to avoid leaving a burden of debt for your survivors.
Note that if you want to have the ability to name your own beneficiaries on a policy, this may not be the term life insurance policy for you. A mortgage life insurance policy is sold by your mortgage lender, so the lender will typically be named as the beneficiary. By contrast, you will be able to choose your own beneficiary on a decreasing term life insurance policy.
Decreasing term life insurance may be suitable for you under the following circumstances:
Decreasing term life may not be for you if you have a spouse or dependents who rely on your income. For example, if your kids are growing up and won't need your support much longer, you may be considering decreasing term life insurance. However, if your spouse will continue to have an ongoing need for your support, this may not be the best choice. Be sure to consider your spouse's life expenses, mortgage payments and retirement.
To get the help you need to assess the best life insurance for your specific circumstances, speak with a local independent life insurance agent in the Trusted Choice network. These agents have access to numerous life insurance companies and options, and can compare policies and help you find the right coverage for your needs and budget.
Contact an independent agent today to find the most suitable life insurance policy for you.