What happens to the death benefit in a Decreasing Term policy over time?

In a Decreasing Term policy, the death benefit is designed to diminish over the life of the policy. This type of insurance typically covers a specific period, and as time goes on, the amount of the death benefit reduces according to a predetermined schedule. Such policies are often used to cover specific financial responsibilities that decrease over time, like a mortgage or other debts, where the coverage amount aligns with the decreasing need for coverage.

The structured decrease in the death benefit provides a more affordable premium compared to level term policies, where the death benefit remains constant throughout the life of the policy. This characteristic makes Decreasing Term policies particularly appealing for individuals looking to insure a debt or obligation that will reduce in size over time.

The other choices either suggest an increase in the benefit, constancy, or confusion about when the benefit is paid, which does not align with the fundamental design and function of a Decreasing Term policy. Therefore, understanding the nature of the decreasing benefit is crucial for managing financial obligations effectively.