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Death benefit
The policy proceeds to be paid upon the death of the insured. On life insurance proceeds are not taxable but may be included in the value of the insured's estate for estates tax purposes.
Decreasing term insurance
Term insurance whose amount of coverage starts out at the full amount then gradually decreases until the expiration date of the policy. Generally the cheapest type of life insurance but it has no cash value and cannot be renewed. Often used as mortgage protection insurance
Deferred annuity
An annuity on which payment to the Annuitant are delayed until a specified future date. May be purchased with a single premium ( a SPDA ) or with flexible premium. Interest earned during the "accumulation" (or pay in) period is tax deferred until withdrawal when amount above the Annuitants invested capital (or cost basis) are taxed as ordinary income.
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