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What is decreasing term life insurance?

Posted in Term Life Insurance about 1 year ago, 3 replies

What does that mean? I was researching for some life insurance and was about to go with the standard 30 year term but then saw on the American Fidelity website that they have a term life policy that covers you to age 95 (crazy huh?). They call it Alternative 95 but they say its a decreasing term life policy. On the same webpage they say it has level premiums though.

So what does this mean?

Thank you very much,
Scott
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submitted by Scott Reynolds in Fresno
I DO NOT KNOW WHAT DECEASING TERM LIFE IS, BUT I GOT MY MOTHER LIFE INSURANCE AND AN ANNUITY THAT SHE DOES NOT PAY ANY MONEY FOR,,IT IS PAID OUT AT THE END OF THE POLICY,,,HER POLICY 1 MILLION, MONTHLY PAYMENTS 5,000 IF SHE CASHED OUT OR DIED THE PREMIUM IS DEDUCTED FROM PAYOUT....PRETTY GOOD DEAL...
MY EMAIL IS nicole@mlode.com IF YOU WANT AGENTS NAME...NOT SURE I CAN PUT ON THIS..??
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submitted by nicole in sonora @ August 21, 2008 - 02:03 PM
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Alternative 95 is a participating decreasing term life insurance policy with Guaranteed Level Premiums to age 95. This policy earns dividends, which are designed to purchase one-year term insurance each year. Although no insurance company can guarantee dividends, using their dividend schedule to purchase one-year term insurance to make up the difference in the reducing benefit each year. This would result in a Level Death Benefit to age 95.
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submitted by Ronald Belham in Philly @ September 05, 2008 - 03:29 PM
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If you are considering decreasing term life insurance, you may want to compare your rates with those available for level term life insurance. Why? Because level term offers you guaranteed level rates for up to 30 years, and your life insurance coverage amount does not decline each year. And, the rates may be lower than those for decreasing term life insurance.
Photo of Hadley.
submitted by Hadley in Chicago @ October 16, 2008 - 11:16 AM
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