What typically characterizes decreasing term life insurance?

Decreasing term life insurance is specifically designed so that the death benefit decreases over the duration of the policy. This type of insurance is often used to cover specific debts or financial obligations that diminish over time, such as a mortgage or a loan. As the insured ages or as the debt is paid down, the total amount of the death benefit also declines in a predetermined manner, usually at a fixed rate.

This design allows policyholders to align the coverage with their decreasing liabilities, making it an efficient and cost-effective option for those whose insurance needs are expected to decrease over time. As people often have fewer financial obligations as they age or as debts are repaid, decreasing term life insurance provides a suitable match for these changing needs.

In context, the other options do not accurately depict the nature of decreasing term life insurance. The death benefit remaining constant or increasing would be characteristic of other types of life insurance policies, while increasing premiums are not a defining feature of decreasing term policies, which typically have level premiums throughout the term.