Decreasing Term Insurance
Categories: Insurance
Decreasing Term Insurance is life insurance where the benefits decline over the course of the coverage period.
Under this plan, you get maximum coverage when you’re young and most heavily in debt, when your spouse and/or kids would most face financial hardship if you unexpectedly bought the farm. Then, as you age and (presumably) pay off debts, like your mortgage and college loans, the coverage begins to dwindle away. This makes it cheaper than a traditional policy while still providing peak coverage when your family would be most vulnerable.