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Traditional Mortgage Term Life Insurance is Decreasing Term
Life Insurance. Decreasing
Term Insurance is term life insurance on which the face value
slowly decreases from the date the policy begins, to the date the
policy expires, while the premium remains level. The intervals
between the decreases tend to be either monthly or annually.
Mortgage Term Life Insurance covers
you for a specified term (from 10 to 30 years, in most cases). If
you die within the term, your beneficiary receives the stated
death benefit of the policy.
Unlike other forms of term Insurance,
Mortgage Term Insurance normally is a non-med product, no medical
underwriting is required in many cases up through table 4 or table
6 with some companies.
Return of Premium is
also available on Mortgage Term Insurance policies. It’s simple to understand: If you
keep your policy for the term period, at the end of that time
whether 15, 20 or 30 years, the life insurance company that issued
the insurance with the return of premium policy returns all of the
premium that you paid for the life insurance. There also is some
partial return of premium for policies canceled before the end of
the term (depending on the year it’s canceled – the longer
it’s kept , the higher the amount of the return.)
Return-Of-Premium
is aimed right at one of the greatest objections to
traditional term life insurance: “I am probably not going to
die, and my money will have been wasted." When you buy
insurance with a return of premium option, you do not have to
waste your money. Unlike regular term life insurance, Return of
Premium term life insurance rewards you for living by offering a
guaranteed return of your total cumulative premium paid on the
policy during the level term period. |
Money Back / Return of Premium
