Decreasing Term Life
Term life with face amount that drops over time — generally inferior to level term.
Quick definition: Term life with face amount that drops over time — generally inferior to level term.
Full explanation
Decreasing term life has a face amount that drops over the term, typically tracking a mortgage amortization schedule. The premium is level. Sold mainly as Mortgage Protection Insurance (MPI). Level term at the same monthly cost almost always provides more coverage for longer, with no decrease — making decreasing term a niche product rarely chosen by informed buyers.
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