Aspects of decreasing term life insurance

Decreasing term life insurance provides coverage to the policy holder for a set period of time. The policy holders family is entitled to receive a lump sum as payment in the event of death. The degree of cover in a decreasing term insurance policy reduces over time even though the monthly premium remains the same for the entire duration of the policy.

The lump sum payable to the holders family in the event of his or her death reduces as the policy gets closer to its term end. The rates of the premiums are fixed and are based on the amount of money that is to be insured. Other factors such as age, sex, weight, height and overall medical history of the policy holder are also taken into account. It would be ideal to be a non-smoker in order to obtain the best possible decreasing term life package.

Smokers and obese people often end up paying much higher premiums (as much as 50% more in many cases) upon purchasing insurance products. Quitting the habit and changing your lifestyle could go a long way towards reducing the premiums on your  policy.

This type of insurance policy is generally very useful to cover any outstanding payment in relation to mortgages in the event of the policy holders death. If the investor happens to survive the length of the entire term, then they are no longer eligible for any payout.

A decreasing term life insurance is important because mortgage loans can be very substantial.  If the owner of the house were to suddenly perish his or her family would find it very difficult to meet monthly expenses without having a regular source of income.  A decreasing term life insurance can provide much-needed succor to the dependents, as they would receive a lump sum as payment to address any immediate expenses.

Benefits of decreasing term life insurance

It is a cheaper form of product than the traditional term life insurance.

It pays outstanding mortgage payments in the event of the policy holders death.

Disadvantages of decreasing term life insurance

The policy would not bear you any fruit once it reaches the end of its term. The money spent for the whole duration will reap no returns.

There is no maturity plan if the investor were to survive the length of the policy.

Getting a comprehensive decreasing term life insurance plan

There are several forums on the Internet from which you can get the best quotes on decreasing term life plans. You can fill out the particulars to find more info on the different types of plans.

You will get a questionnaire that will ask you details on your age, sex and job status. Fill this in and send the information. Once that is done, you will receive around 40 to 50 quotes from some of the best companies dealing in decreasing term life insurance.

Pick the right kind of quote only after carefully studying the reputation of the insurance company, details of the coverage and the price on offer. There are several quotes that appear to be the cheapest but have very poor backing with a lack of reputed carriers or  half-baked coverage. As ever, the devil is in the detail and it pays to research each policy carefully.

You will then be contacted by an agent by mail or phone to complete the purchase. Clarify any doubts you may have  with regards to the plan and check with the agent if there are any hidden costs or clauses in the agreement that you should know about. If you are satisfied, you should have your new decreasing term life insurance policy in a matter of  weeks.

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