What is true about a decreasing term life policy?
Your coverage amount decreases over time with decreasing term life insurance, meaning that your premium is lower than many other types of policies. These lower rates might sound like a good thing, but be careful – this type of policy can leave you unprotected when you need it.
Which is the decreasing term plan?
A decreasing term insurance plan is a term plan where the Sum Assured decreases every year by a fixed percentage. Other features of the plan are similar to normal term insurance plans and are as follows: You can choose the original Sum Assured under the plan which then reduces every year throughout the policy tenure.
What is one important element of decreasing term insurance?
One important element of a decreasing term life insurance policy is that the death benefit decreases over time. This can provide protection for a specific period of time, such as when you have a mortgage.