• Reducing term insurance provides a death benefit that decreases each year according to a predetermined schedule, whereby premiums also decrease over time.

  • Short term insurance is often purchased to protect personal assets.
  • The lender may also require that the remainder of the loan be guaranteed until it is repaid in the event of the borrower’s death.
  • The life reduction policy is very similar and may reflect the mortgage repayment schedule.
  • Reduced term life insurance is cheaper than traditional term or permanent life insurance policies.