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Usually, people buy Houston TX decreasing term life insurance with a specific purpose in mind. It operates differently than other term life insurance plans. Depending on your circumstances, it may not be the right fit for you.
Before deciding on a life insurance plan, you should assess your and your family’s situation. This assessment should include, but isn’t limited to, your current financial status, age, health, family medical history, plans for the future, wants, and needs.
Once you grasp what you’re searching for, you should shop around to see what type of life insurance is best for you. If you have any questions or want to see all your available options, contact Best Life Insurance Houston Agency for more information.
Houston TX Decreasing Term Life Insurance
Decreasing term life insurance is a variant of the typical term life plan. That means it still has most of the term life insurance characteristics. As with all term life plans, they only last so long. These policies can last anywhere between 10 to 30 years.
And as with the typical term life policy, you’ll have level premiums throughout your policy’s lifespan. Your insurance company will set the premium at the beginning. That will factor in a few things, including, but not limited to, your age and how long the policy is. In a nutshell, the company sets a number, and you’ll be paying that amount for however long your policy lasts.
This point is where decreasing term life policies decide to dress in different colors to stand out from the other term policies. This feature may make it or break it for you. Your death benefits drop throughout the policy.
The death benefit will start higher than usual. Then it’ll decrease at predetermined, scheduled intervals. Depending on the policy, this could be either monthly or annually. By the end of the term, you’ll either have significantly less of your death benefit or none at all.
Of course, there is a perk with all of this. Decreasing term life insurance is one of the few types you won’t need to go through a medical exam to apply for. Regardless of your medical complications or history, this type of policy is an option if you need life insurance quickly.
What Is Term Life Insurance?
Before explaining decreasing term life insurance, you should understand how the typical term life plan works. It’s the simplest type of life insurance. It’s temporary life insurance, lasting only for a specific amount of time, or term if you will. The range could be anywhere from one year or 30 years, depending on what kind of policy you take out.
And because it’ll only last so long, term life plans are usually the most affordable. It’s a reliable way to get a sufficient amount of coverage for a reasonable price. If you’re on a budget and don’t mind not having lifetime protection, term life insurance is an optimal choice.
Of course, because it’s cheaper than your average option, there are some drawbacks. The first is the most obvious. Once the policy expires, you won’t be protected anymore. At the longest, you’ll have protection for a couple of decades.
When your insurance expires, you may have to find another plan to continue having coverage. Another disadvantage is that most term life insurance doesn’t offer any other benefits besides the death benefit. If you want your insurance policy to have cash value, you should look at the different types of permanent life insurance plans instead.
There isn’t a one-plan-fits-all insurance plan out there. You’ll have to shop around and find one that best suits what you want. If you wish for short-term and affordable life insurance, a term life plan may be for you.
The Term Life Insurance Variety
There are several types of term life insurance. Some examples are decreasing, increasing, level, convertible, and renewable term life insurance. Decreasing, increasing, and level term life plans have different ways to deal with the death benefits. Convertible and renewable term plans are options on what to do as your policy expires.
And even then, decreasing term life insurance is only helpful in certain circumstances.
What’s the point of decreasing term life insurance?
Unless you have a specific need for it, you may be better off getting a standard term life policy or another type of life insurance. Now, what is decreasing term life insurance great for? It’s typically bought if you’re protecting certain investments, like a house mortgage or have debt.
If you want insurance to ensure that those payments are paid for after your death, and don’t become a burden on your family, then decreasing term life insurance is beneficial. Since, optimally, as you’re paying off those payments, the balance will reduce alongside your death benefits.
If you die before you pay the mortgage or debt off, your family can use the death benefits to finish it off. Most Houston TX decreasing term life insurance plans have options where you can match your mortgage or debt payments with the intervals of your death benefits dropping.
The Pros And Cons
Like most term life policies, decreasing term life insurance is more affordable than your permanent life insurance options. Of course, compared to other term life policies, it may be more expensive in the long term. Since it has level premiums, you’ll be paying the same amount for less when your death benefits are substantially lower.
This type of policy usually doesn’t need you to prove your insurability with a medical exam. If you’re looking for options for no exam life insurance, this is one of them. If you need life insurance quickly, then this is a viable option.
It’s helpful if you want to use it as another measure to pay your remaining mortgage or debts in the worst-case scenario. However, if that’s not what you’re perusing life insurance for, then you may want to look at other types of life insurance that may better suit you.
If you have any questions, ask the experts with Best Life Insurance Houston Agency. They’ll be able to tell you if any Houston TX decreasing term life insurance plans suit you.
Houston, TX Fun Facts:
- Wes Anderson, who was born in Houston, is the great-grandson of writer Edgar Rice Burroughs.
- South Park creator Matt Stone was born in Houston.
- Cynthia Cooper, now head of the USC Women’s Basketball Team, got her start playing for the Houston Comets.
- The Beer Can House is covered with 39,000 beer cans, all of which were consumed over an 18-year period by John Milkovisch, who really, really loved beer.
- Check out the official website for more information.