Which type of life insurance has typically lower premiums due to decreasing coverage?

Decreasing Term Life Insurance is designed to provide coverage that gradually diminishes over time, typically in alignment with a specific financial obligation, such as a mortgage. This structure results in lower premiums compared to other types of life insurance because the death benefit decreases as the policyholder ages, reflecting the declining risk to the insurer as the coverage amount reduces.

In essence, since the policy's face value is reduced, the insurer's potential payout also decreases, allowing them to offer lower premiums. This type of insurance is often appealing for individuals who want affordable coverage that corresponds with diminishing debts or responsibilities, making it a practical option for many policyholders.