Decreasing Term?

Jun 12, 2007

  1. trvlnut
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    trvlnut Super Genius

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    Anyone know who offers the most competitive decreasing term product? Is the savings substantial enough to by-pass level term?
     
    trvlnut, Jun 12, 2007
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  2. somarco
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    somarco That Medicare Expert Guy

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    I never saw a need for DT. Who needs less insurance as they get older?
     
    somarco, Jun 12, 2007
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  3. trvlnut
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    trvlnut Super Genius

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    I feel the same way. My dad wants it for his wife. I think he wants it to pay off the mortgage.
     
    trvlnut, Jun 12, 2007
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  4. Guest
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    DT is good for someone who needs protection now, but who anticipates high earnings later. I know some doctors and dentists get DT as they expect that in 20 years they will have built up a good portfolio for their estate and won't need the protection as much.

    Also, DT can be used on any wasting asset, such as a mortgage or a loan on capital equipment. If you owned a sports team, you might buy DT on a young star (pitcher, QB, etc.) with the idea that he will be worth less to the team as he ages and his trade-value is lower. With that logic I think my wife wants to buy DT on me!

    Al
     
    Guest, Jun 12, 2007
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  5. lifesettlementadvisor
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    lifesettlementadvisor Guru

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    Is there such a product as convertible decreasing term?
     
  6. zackarychapple
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    zackarychapple Expert

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    While there are some cost savings for decreasing term, who would want the level of insurance to go down. The doctor example that al gave saying that he will earn more and have a bigger estate, two things come to mind, the first being estate taxes, insurance can help get some money off his estate if you do it right, and second why would he want to give less to his loving wife. Why not give her all that and then....
     
  7. James
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    James Guru

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    I just love this, on one hand no one needs WL because you don't need insurance as you get older. Now lets bring up DT, then I hear who wants their insurance to decrease as they age? Wow, talk about confusion!
     
    James, Jun 14, 2007
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  8. trvlnut
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    trvlnut Super Genius

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    My dad is in his 70s. His wife is in her 40s. She will be the insured. If something should happen to her before he dies, he wants to pay off the house. There won't be any estate taxes. They owe less than 100K on their home. In this case, decreasing term would make sense. Although, I don't think the cost difference would be worth searching for a company that carries it.
     
    trvlnut, Jun 14, 2007
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  9. Newby
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    Newby Guru

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    Doesn't everyone need more coverage while they are young and less as they get older? Once you pay off the house and raise the kids and build up your net worth...what do you need it for.

    If that's not true, there are going to be a whole lot of disappointed people when their term-life coverage is over regardless of whether it is decreaseing or level.
     
    Newby, Jun 14, 2007
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  10. James
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    James Guru

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    I'm sure your carrier will have a decreasing term contract.
     
    James, Jun 14, 2007
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