What is decreasing term life insurance?
Decreasing term life insurance, also known as mortgage life insurance is a type of life insurance where the payout your loved ones receive in the event of your death decreases by an agreed amount each year. Quite often, it’s bought by homeowners who want to ensure that their repayment mortgage isn’t left to their dependents when they die. It’s also taken out by people that don’t think their dependents will need such a large payout as the years pass by. For example, when your children are young and still financially dependent on you, they’ll need more money than when they’re adults and self-sufficient.