What is the difference between level term and decreasing term life insurance?

Level term life insurance maintains the same death benefit throughout the entire policy period. If you purchase a $500,000, 20-year level term policy, your beneficiaries receive $500,000 whether you die in year one or year twenty. Premiums are also fixed and do not change during the term.

Decreasing term life insurance starts with a high death benefit that declines over time, typically in tandem with a declining financial obligation like a mortgage balance. Because the benefit decreases, premiums are generally lower than comparable level term policies. Mortgage protection insurance sold by lenders is often a form of decreasing term.

For most Nevada residents, level term is the more flexible and widely preferred option. Your coverage need doesn't always decline in parallel with your mortgage—income replacement needs, for instance, remain constant regardless of your mortgage balance. A level death benefit ensures your family receives maximum protection whenever death occurs.

Decreasing term may be appropriate in limited circumstances where the primary goal is mortgage indemnification and cost is the primary driver. An agent in our network can compare both options against your specific objectives.