Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
1,885,195,936 visitors served.
forum mailing list For webmasters
?
New: Language forums
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Decreasing Term Insurance

    0.01 sec.
Decreasing Term Insurance
A term life insurance policy in which the policyholder pays a constant premium but the benefit decreases over time, either on a monthly, quarterly, or yearly basis. For example, one may purchase a decreasing term life insurance policy for a period of 20 years at a premium of $150 per month. At first, the benefit may be as high as, say, $200,000, but it may gradually shrink each year to, say, $50,000. A decreasing term policy is primarily beneficial to young people who have a considerable amount on liabilities but do not expect to have them in the future.

Decreasing term insurance. With a decreasing term life insurance policy, the amount of the death benefit decreases each year of the fixed term -- such as 20 years -- although the premium remains the same.

This type of insurance tends to be an economical way to protect your beneficiaries should you die unexpectedly during a period when you have substantial financial responsibilities.

For example, young parents with a large mortgage might consider decreasing term policies to help insulate each other against the responsibility of meeting their financial obligations should something happen to one of them.



How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Email
Feedback
Add definition
? Mentioned in ? References in periodicals archive
 
Decreasing- If a person wants to pay lesser he can go for the decreasing term insurance plan.
If a person wants to pay lesser he can go for the decreasing term insurance plan.
Decreasing term insurance is most often used when you only want enough insurance to repay your mortgage should you die before it is paid in full and you don?
 
Financial browser? ? Full browser
 
 
Financial Dictionary
?

Disclaimer | Privacy policy | Feedback | Copyright © 2010 Farlex, Inc.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. Terms of Use.