Life insurance
Decreasing term life insurance is a term policy whose death benefit shrinks over the policy period, usually on a schedule designed to track a declining loan balance such as a mortgage. Premiums typically stay level. It is cheaper than level term with the same starting face amount but leaves less coverage in later years.
Decreasing term fits a debt that amortizes and little else. If the family also needs income replacement, a level term policy sized to the combined need often serves better, and the price difference may be smaller than the client expects. Agents should show both before recommending one.
The decision depends on how much of the total need is the mortgage. When the life calculator shows Mortgage Balance as a small slice of Recommended Coverage, decreasing term is rarely the whole answer; when it is most of the need, it is worth discussing.
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