New messages from Aflac |
View Notifications opens a dialog
Close X dismisses the notification alert
Decreasing term life insurance is a temporary policy with a death benefit that gets lower over time. If you believe your loved ones will need less financial support as time goes on, this type of plan is worth exploring. Let’s dive deeper into what decreasing term life insurance is and how it works.
Table of Contents
Just like other types of term life insurance, a decreasing term life policy offers coverage for a set period of time, typically between 10 to 30 years. It comes with a starting death benefit you can choose when applying for coverage.
The death benefit will decrease a certain percentage each month or year, depending on the policy.1 If you pass away while the plan is still active, your beneficiaries can file a claim to collect the death benefit amount available at that time.
Premiums for decreasing term life insurance will decrease over time due to a predetermined schedule.1 The price you pay can depend on several factors, such as the amount of coverage you choose, the length of the term, your age, your health, your lifestyle, and your occupation.
Here’s a look at how decreasing term life insurance can differ from other types of term life policies:
Unlike decreasing term life insurance, level term life insurance offers premiums and a death benefit that stay the same throughout the policy’s duration.
Renewable term life insurance offers coverage you can renew at the end of the term without undergoing a medical exam or worrying about getting turned down. Unlike decreasing term life insurance, it comes with a renewal premium that will be based on your current age.
Convertible term life insurance lets you switch your coverage to permanent life insurance without having to pass a medical exam. While premiums for decreasing term life insurance decrease, premiums for convertible term life insurance typically increase.
Increasing term life insurance is the opposite of decreasing term life plans. With an increasing term life insurance policy, your death benefit will increase over its life, helping to provide additional protection for the future.
Don’t wait until it’s too late. Help cover yourself and your family with coverage from Aflac.
Get StartedCompared to other types of life insurance, decreasing term life may be more cost beneficial. This is because the death benefit gets smaller as the term goes on.
If you have large debts that will become smaller over time, such as a mortgage or student loan, decreasing term life insurance can come in handy. It will allow you to help protect your loved ones against your debts in a helpful way.
Decreasing term life insurance is a flexible policy. If you choose this type of life insurance plan, you can customize your coverage and save money as your financial obligations go down.
If you own a small business and would like to help cover a business loan that will help continue operations upon your death, decreasing term life insurance might make sense.3 There will be a contingency plan for repaying the debt.2
Decreasing term life insurance can be a smart choice if you’re looking for a policy that can help protect your loved ones against loans that will decrease over time, such as your mortgage, car loans, personal loans, and business loans.4 It may also be a good idea to get this policy if you know your family won’t depend on your income in the long run because they either have their own income or will become self-sufficient as they grow.
Decreasing term life insurance provides policyholders with coverage for a set term. But its death benefit will decrease over time at a specific rate. It’s smart to consider your coverage needs and budget when deciding whether this policy is right for you.
If you’re interested in term life insurance with enhanced coverage and great premiums, Aflac offers plans that can meet your needs. Start chatting with an agent and get a quote today!
Get Started
The rates you'll pay for term life insurance depend on your age and other factors. Find out how rates vary with age and how to find the best term life insurance plan for you.
Life insurance covers your loved ones if you pass away unexpectedly. Learn how life insurance works, what it covers, and some types of policies available.
The rates you'll pay for term life insurance depend on your age and other factors. Find out how rates vary with age and how to find the best term life insurance plan for you.
Life insurance costs vary based on many factors. Learn how much life insurance is on average and what affects the cost to decide on a life insurance plan.
1 Investopedia - Decreasing Term Insurance: Definition, Example, Pros & Cons. Updated July 23, 2023. Accessed April 10, 2025. https://www.investopedia.com/terms/d/decreasing_term_life.asp.
2 Corporate Finance Institute - Decreasing Term Life Insurance. Accessed April 10, 2025. https://corporatefinanceinstitute.com/resources/wealth-management/decreasing-term-insurance/.
3 Policygenius - Decreasing term life insurance: What you need to know. Updated October 4, 2023. Accessed April 10, 2025. https://www.policygenius.com/life-insurance/decreasing-term-life-insurance/.
4 ValuePenguin - What Is Decreasing Term Insurance? Is It Right for You? Updated January 10, 2024. Accessed April 10, 2025. https://www.valuepenguin.com/decreasing-term-life-insurance#me.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Aflac coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, Aflac coverage is underwritten by American Family Life Assurance Company of New York.
Aflac life plans – A68000 series: Term Life Policies: In Arkansas, Idaho, Oklahoma, Oregon, Texas, Pennsylvania & Virginia, Policies: ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68200, A68300 & A68400. In New York, Policies NY68200, NY68300 and NY68400. Whole Life Policies: In Arkansas, Idaho, Oklahoma, Oregon, Texas, Pennsylvania & Virginia, Policies: ICC1368100. In Delaware, Policy A68100. In New York, Policy NYR68100. B60000 series: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Not available in Delaware. Q60000 series/Whole: In Arkansas & Delaware, Policy Q60100M. In Idaho, Policy Q60100MID. In Oklahoma, Policy Q60100MOK. Not available in Virginia. Q60000 series/Term: In Delaware, Policies Q60200CM. In Arkansas, Idaho, Oklahoma, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C. Not available in Virginia.
Aflac Final Expense insurance coverage is underwritten by Tier One Insurance Company, a subsidiary of Aflac Incorporated and is administered by Aetna Life Insurance Company. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (NAIC 92908).
In AR, DE, ID, OK and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Aflac Final Expense policies are not available in New York.
Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY, VA or VT. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations, and exclusions.
Aflac WWHQ | Tier One | 1932 Wynnton Road | Columbus, GA 31999
Aflac New York | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211
Z2300477R2
EXP 6/26
