What feature does a 'Decreasing Term' insurance policy provide?

A 'Decreasing Term' insurance policy is designed specifically to provide a death benefit that decreases over the life of the policy, while the premium remains level for a specified term. The nature of this policy is particularly useful for individuals who are seeking coverage that corresponds with diminishing financial obligations, such as a mortgage or a loan, where the amount owed reduces over time.

As the death benefit decreases, the policyholder pays a fixed premium, which can make budgeting easier as it avoids fluctuations in premium costs. This structure aligns with the principle that the need for coverage typically diminishes as the insured's debts decrease.

Other options suggest features that do not accurately describe a 'Decreasing Term' policy. For instance, a flat premium with an increasing death benefit, a level death benefit with decreasing premiums, or a large payout at the end of the policy term do not reflect the core characteristics and intended function of a 'Decreasing Term' insurance product.