Decreasing Term Life Insurance
A type of term life insurance where the death benefit decreases over the policy's term, while the premium typically remains level.
Detailed Explanation
This type of policy is often used to cover a decreasing debt, such as a mortgage.
Practical Example
Mark and Lisa took out a decreasing term life insurance policy to match the decreasing balance of their mortgage. As they pay down their mortgage over time, the death benefit of the policy also decreases.
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