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A quick guide to decreasing term insurance
August 10th, 2010 by admin
Decreasing term insurance provides a death benefit that decreases in amount over the policy term periodically. It is an option used to protect a mortgage wherein the policy will pay your mortgage in case of your death or disability. The value of this insurance goes down as you pay your mortgage, in line with it. If you have a mortgage then this is the type of life insurance for you. People who are worried about causing a financial burden for their families often opt for such policies as they are cheap. However, the premium rates are three to five times higher than the straight term life insurance premiums. This type of insurance is beneficial for people who are young and have a huge mortgage to be repaid. As you age, your family becomes less dependent and the mortgage amounts get considerably reduced.