Decreasing Term Life Insurance, Part 3

However, there are reasons why consumers purchase this type of term life insurance. For example, as the policy owner/insured ages, the death benefit decreases. Okay, we got that down. However, one could argue that as a family ages and gets older, there are less expenses to pay for. But this isn't always cut and dry. For example, as people get older, they require more maintenance of their bodies, such as medical and hospital bills. In addition, sometimes parents obtain life insurance policies and name their children as the beneficiaries. If this is the case, then the costs for the beneficiary will not decrease because he/she will not be older than the insured. In addition, inflation always should be taken into consideration because the cost of living (depending on where you live) is always rising it seems. So, if the death benefit decreases and the cost of living increases, it is not a good combination for the beneficiary.

Decreasing Term Life Insurance, Part 1
Decreasing Term Life Insurance, Part 2
Decreasing Term Life Insurance, Part 4
Decreasing Term Life Insurance, Part 5
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