There are number of different insurance types when it comes to term life insurance: decreasing term life insurance is one of them. If you have any financial commitments and believe your dependents might not be able to continue the payout if anything happens to you in the event of unfortunate, then continue reading about the policy below.
Decreasing Term Life Insurance, sometimes also known as Mortgage Life Insurance, serves the purpose of providing coverage over a fixed amount of time - decreasing in value as the term is carried out. This is ideal for mortgages, as you pay off your loan each month, meaning the amount you are liable for decreases over time. This is then reflected in your monthly premiums and payout amount - dynamically covering the amount your mortgage is.
Usually, it's people who have large financial commitments who also are responsible to dependents that couldn't afford to keep up on payments if the worst should happen to you. As decreasing term life insurance quotes exists to cover a specific financial commitment, it won't pay out any extra - meaning that there is no cash surplus for your dependents once you're gone. For this reason, it's a very cost-effective life policy, but doesn't provide any buffer once you're gone.
The most common time to purchase a decreasing term policy is when buying a new home. Some mortgage brokers even build this into their contracts, not only safeguarding their clients, but making sure that the mortgage company is happy in the knowledge that the mortgage will be paid off in full.
Essentially, a decreasing term life insurance quote will only be useful when you're paying off a large financial commitment. Expensive cars, homes and other large investments could all be covered with this insurance policy.
Directly, no. Unlike a regular policies, a decreasing term life insurance policy will provide peace of mind regarding the expenses of your mortgage because if something terrible were to happen, it would be taken care of immediately. The payout would go directly to your mortgage lender, and would never reach your family.
However, if you were to leave the home to a family member in your will, then they would inherit a fully paid-for home, which is just as useful as a large wad of cash.
Not at all! That is one of the biggest advantages of this plan. It is almost never necessary to get medical exams or profound examinations to qualify for this type of insurance, getting decreasing term life insurance quote has never been easier.
Pure Cover has outlined the top advantages of decreasing term life insurance, if you found that it helped you, get your free quote now.