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BUS 323 Week 3 Discussion 1

For each of the following life insurance policies, describe a situation that is best suited for that type of insurance. Explain your answer. Respond to at least two of your classmates’ postings.

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Decreasing Term Insurance

Decreasing term insurance is a renewable term life insurance where the coverage gradually decreases over the span of the policy. The premiums deducted are usually constant throughout the contract. The theory behind decreasing term insurance holds that with age, certain liabilities, and the corresponding need for high insurance levels decreases (Kagan, 2020). This type of insurance would be beneficial for people who are looking for temporary coverage. At the same time, they pay off debt or financial obligations such as a mortgage, auto loan, personal loan, or college loan. An example where decreasing term insurance is suitable is when one does not feel

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