What type of life insurance policy is most suitable for someone who wants to ensure their family can pay off a mortgage if they die before it is paid?

Decreasing term insurance is particularly well-suited for individuals who want to ensure their family can pay off a mortgage in the event of their death. This type of policy is designed to provide a death benefit that decreases over the term of the policy, ideally aligning with decreasing debt such as a mortgage balance.

As a mortgage is typically structured so that the amount owed decreases over time, decreasing term insurance matches this trend by reducing the coverage amount as the mortgage balance gets lower. This makes it a cost-effective choice, as premium payments for decreasing term insurance are generally lower compared to other types of permanent insurance.

Whole life insurance offers a fixed death benefit and accumulates cash value but does not directly correlate with decreasing debts, making it less effective for this particular need. Universal life insurance provides flexibility in premiums and death benefits but is also not specifically tailored to decreasing debt obligations. Level term insurance provides a consistent death benefit throughout the term, which does not align with a declining mortgage balance, making it less relevant for this situation.

Thus, decreasing term insurance is the ideal choice for ensuring that mortgage obligations can be met in the case of untimely death, as it effectively mirrors the decreasing nature of the mortgage itself.