Looking for coverage during a short period of time? Decreasing term life insurance can offer the flexibility and affordability you and your family need.
What is Decreasing Term Life Insurance?
Term life insurance plans keep you covered financially for a set period of time. With a decreasing term life insurance policy, the death benefits for the plan decreases over time. These plans are generally more affordable than other types of term life insurance, making them a smart choice if you just need insurance to cover a temporary need or plan to leave little to no debt for your family to payoff.
How Does Decreasing Term Life Insurance Work?
With term life insurance, you can choose from a variety of different term lengths, usually between five and 30 years. If you die while the policy is in force, your family will receive a lump sum of cash called a death benefit. With a decreasing term policy, your death benefit will go down by a scheduled percentage during every year of your policy.
For example, let’s say you buy a 20-year plan with a $200,000 payout and reduction rate of 5%. If you die during the first year of coverage, your loved ones would receive the full benefit amount, or $200,000. Every year after that, the payout would decrease by 5%. At the end of the fifth year, your benefit would be $150,000, or 25% less than the starting amount. The payout would keep decreasing until it is either paid out to your family when you pass away or the policy term is up.
Does all this seem like a lot to process? Don’t worry! Call Us 888-502-5267. The insurance experts at Elite Insurace Brokers are here to help answer your questions, address your concerns, and guide you in the direction of a final expense life insurance policy that fits your needs and your budget. Visit us today to get a free,-strings-attached quote, and then come back often for more information and inspiration about life and life insurance!
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