What kind of life insurance is Decreasing Term Insurance? How is it different from general life insurance? What is the premium?

What is Decreasing Term Insurance?

Decreasing Term Insurance is a temporary form of life insurance that is designed to cover a specific financial need, usually a loan or other type of outstanding debt.

Decreasing Term Insurance is often called DTA insurance or mortgage insurance. It’s important where you buy the policy: if you buy it directly from an insurance company, you’ll get to choose the beneficiary; if you buy it as part of a loan, your lender is usually the beneficiary.

Decreasing Term Insurance is a specific type of policy in which the coverage level or death benefit decreases over time, usually annually. When you purchase Decreasing Term Insurance, the death benefit decreases periodically until the end of the term. In this case, if you die before the loan is paid off, the remaining death benefit will be paid to your beneficiaries. Due to the decreasing death benefit, Decreasing Term Life Insurance is generally cheaper than Term Life Insurance.What is the difference between Decreasing term life and level term life?

These two types of term life insurance have certain similar expenses, but their features are very different. With level term life, the death benefit remains the same throughout the policy term as long as you pay the premiums. But with decreasing term life policies, the death benefit decreases over time. Both term policies usually have the same term, ranging from 5 to 30 years, although some companies offer 40-year policies.

Choosing between the two depends largely on your needs and budget. If your need for life insurance decreases over time, a Decreasing Term Insurance policy may be a better choice, and it is generally less expensive than term life insurance.Buy Decreasing Term Insurance

Compared with insurance companies that provide ordinary term life insurance, the number of insurance companies that provide Decreasing Term Insurance is limited, mainly the following:

1. Banner Life

2. Farmers

3. John Hancock

4. Protective Life

5. Prudential

How much your term life insurance policy costs decrease depends on several factors, including: