Which type of term insurance typically has a decreasing benefit over time?

Decreasing term insurance is designed specifically to provide a death benefit that decreases over the life of the policy. This type of policy is often used for financial obligations that decrease over time, such as a mortgage. As the outstanding balance of the mortgage shrinks, so does the death benefit of the insurance policy, matching the liability.

Decreasing term insurance may be appealing to policyholders who want to ensure that their beneficiaries can pay off certain liabilities without experiencing unnecessary or excessive coverage costs over time. This structure allows for lower premium costs compared to level term insurance, making it an attractive option for specific financial planning needs.