Perhaps you have a liability in your portfolio that is decreasing each year. A common example would be a mortgage on a rental property or your personal residence. Rather than worry about what will happen to your family when they are forced to pay off the remaining balance of this liability, you can protect yourself with decreasing term insurance.
Decreasing term insurance allows you to cover the balance of any liabilities that you have. As the name suggests, as the liability decreases, so too does the death benefit decrease. The theory behind this is that you will be able to pay a lower premium if the insurance company has decreasing liability to cover as time progresses. The death benefit continues to follow the life of the mortgage and will be sufficient to pay off the remaining balance should you pass away before the contract is completed.
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