Decreasing term life insurance refers to a term life insurance policy where the value of the death benefits reduces every year until the end of the policy. By the end of the policy duration, the value of the death benefit is zero. To help you make the right the right decisions, here are the pros and cons of decreasing term life insurance.
Pros of decreasing term life insurance
- This term life insurance policy is affordable.
- The decreasing term life insurance policy helps you pay any outstanding debts you owe after your death. Your family will not have to pay any debts you owe.
- This policy helps you pay any mortgage debts you have when you die. Buying this life insurance policy helps you protect your family from any risk of eviction after you die.
- When you buy this policy, your life insurance premium will not get higher.
- Your beneficiary is given the payout to use how they want. Your beneficiary can pay your debts after you die.
Cons of decreasing term life insurance
- This policy has no cash value to grow.
- If you cancel your decreasing term life insurance policy, you do not get a payout.
- To buy this insurance policy, you will need medical tests. These tests will confirm that you are in good health.
- This policy is not the best choice if you do not own any other life insurance policy.