| There are many companies providing life insurance | | | | them back. |
| services; you can get most of the information | | | | Decreasing Term Life Insurance |
| you need from insurance brokers, financial | | | | This is taken out specifically to provide a |
| advisers who work for insurance companies, | | | | contingency for repaying the policyholder's loans |
| employees of insurance companies, and other | | | | and mortgages just in case he passes away |
| sources. Much of the information you receive, | | | | before he's able to repay them. The insurance |
| however, will be in general terms - or will focus | | | | coverage is for a specific period (usually equivalent |
| more on 'sales talk' aimed at getting you to | | | | to the life of the mortgage or loan), and the level |
| purchase life insurance from the person you are | | | | of coverage decreases during the policy's term - |
| talking to. | | | | usually in conjunction with the amount of the loan |
| The truth is that there are many different types | | | | or the mortgage (e.g., as the loan is repaid, the |
| of life insurance available - not just the 'cradle to | | | | amount of cover is reduced to cover the balance |
| grave' coverage offered by insurance sales | | | | remaining). The premium remains constant during |
| people. Here are three of them. | | | | the term of the policy. |
| Level Term Life Insurance | | | | Decreasing term insurance works pretty much |
| This is a type of coverage with a specific face | | | | the same way as level term insurance in term |
| amount (the death benefit) over a set number of | | | | length and what triggers the payout. The only |
| years with the premium generally kept constant | | | | difference is the decreasing value of the |
| throughout the policy's term. The term of | | | | coverage. |
| insurance is fixed; it can be 1, 5, 10, 15, 20, and | | | | Whole Life Insurance |
| even 30 years. | | | | If you take out this type of insurance, your |
| The typical aim of this kind of insurance is | | | | family or beneficiary will get a lump sum of |
| providing the family some financial protection in | | | | money. This money can then be used to pay for |
| case of the insured's death within the term- | | | | your children's educations or mere day to day |
| ensuring that there are enough monies to support | | | | expenses. |
| the survivor and any dependent children. It may | | | | Of all three types, this is the most expensive in |
| also be designed to cover payments for loans or | | | | terms of premiums. However, this type of |
| mortgages, again ensuring that the beneficiary will | | | | insurance lets you build cash value which you can |
| not be burdened by the responsibility of repaying | | | | loan out. You can also surrender the insurance in |
| them when the insured passes away. | | | | exchange for the total cash value of the policy. |
| This is how it works. You purchase the insurance | | | | This type of insurance is therefore more flexible |
| plan. This insurance will cover you effectively for | | | | since it offers you more options. Moreover, you |
| the term or the number of years specified in | | | | have coverage as long as you live, provided of |
| your insurance contract. Within that term, too, | | | | course that you keep up your premium |
| you will have to pay insurance premiums regularly. | | | | payments. |
| If you die within that specific time period, your | | | | The above are only three of the available life |
| family or whoever your beneficiary is will receive | | | | insurance options available. It would be best to sit |
| the amount of money specified in the plan. If you | | | | down with an authorized insurance person for |
| don't die within the term, you lose your | | | | advice on the best type of insurance for your |
| premiums, unless your policy states that you get | | | | particular needs. |