term life insurance contract where the face amount of the policy decreases over the length of the contract. The premiums on the contract may not decrease. This type of life insurance is often used for mortgage insurance. As the outstanding balance of the mortgage decreases, the protection needed may also decrease. Also see Life Product Comparison.
Decreasing term life insurance is life insurance in which the total value of the death benefit decreases annually. Decreasing term life insurance is also known as mortgage insurance.
A form of life insurance policy in which the policy's death benefit decreases over the term of the plan.
Term insurance, the face value of which decreases each year over a stated period. Family income and mortgage cancellation are common types of decreasing term insurance.
Term Life Insurance is designed to provide a fixed death benefit that is available for premium paid during a given term. Decreasing Term Life Insurance is similar, except that the of the policy limit decreases, while the premium is generally flat. This type of insurance is useful for guaranteeing mortgage payments and other credit balances that decrease by a fixed amount over time.
A life insurance policy in which the death benefit starts out at the full stated amount but which declines on a set scale throughout the life of the policy, reaching zero at the end of the policy term.
Term life insurance that provides a death benefit that decreases in amount over the policy term. Contrast with increasing term life insurance.