WebLife insurance explained by Thomas Rockford About Term Life Insurance Whole Life Insurance Estate Tax Issues In response to the NY Times article titled Estate Tax Will Return Next Year, but Few Will Pay It, I’d like to say this: The reduction in the estate tax to its lowest rate since 1931 is outrageous. WebAlso known as mortgage life insurance, it’s designed to cover debts that decrease over time - like your mortgage. So, the amount paid out by the policy reduces with time. If you were to die near the start of the policy term, your dependents would receive more than near the end, when there’s less mortgage to pay off.
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