Decreasing Term Life Insurance for mortgages is used because the face value of coverage goes down as the mortgage balance declines. Consider a $100,000 mortgage. A consumer might select a $100,000 face value term policy with a decreasing term.
The premiums will be cheaper on decreasing term life insurance than on level term because the insurance company is not risking the whole amount of the face value for the whole time. Many people choose this for mortgage life insurance or for insurance when they will have declining needs over time.
Sunday, February 24, 2008
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