Death Benefit Decrease on Term Policies

[Pancur]

Hi,
Which companies allow to reduce death benefit on term policies? It's a common feature on ULs but I don't know if it's possible on term policies.
Thanks,

 

[STIBROKER]

do not think there are any....I might be wrong....

 

[dgoldenz]

Prudential will allow them to reduce death benefit once a year as many times as they want. I don't know of anyone else that will do that. Some companies will let you reduce it one time, or once every 5/10 years, etc.

 

[njh_lfg]

Ohio National does, as long as the db never drops below 100k.

 

[Brandy The Broker]

Are you guys saying that "decreasing term" is not common or not widely available anymore? Most commonly used in mortgage protection, I assume...

 

[Ronnie Carter]

@Brandy -- FWIW, the last decreasing term I can remember seeing was offered by F&G (now OM Financial), and premiums were almost as high as level term. Out of forty companies I use I cannot think of any others; could be wrong, though. Possibly some policies still offered by lenders to just pay off mortgage debt are still around, perhaps, maybe.

 

[WinoBlues]

Protective and Cincinnati life. To the limits.

 

[VolAgent]

Protective and Cincinnati life. To the limits.

I thought most companies would let you do this? Think about it, reducing the face amount on an older policy reduces the risk. Reductions in the first few years are the only things that hurt the company.

 

[WinoBlues]

I thought most companies would let you do this? Think about it, reducing the face amount on an older policy reduces the risk. Reductions in the first few years are the only things that hurt the company.

Those were just two I have been involved in recently. Some will not let you change the policy. Also, you have to deal with the class rating. Example, I have a divorced couple where one of the spouses want to reduce the face on the other to 25 - 50K . However, the other spouse was rated pref'd +. Under 100k is only std. We can not reduce the rating, so we can not reduce the face.

 

[pitterz]

Most companies do offer decreasing term, like someone said it is probably one of the most common policies and commonly used to protect a repayment mortgage but you don't have to have a mortgage to get a d.term policy so shop around.

Any quote you get, as mentioned above, will be subject to medical health etc.