Decreasing term insurance

With a decreasing term life insurance policy, the amount of the death benefit decreases each year of the fixed term - such as 20 years - although the premium remains the same.

This type of insurance tends to be an economical way to protect your beneficiaries should you die unexpectedly during a period when you have substantial financial responsibilities.

For example, young parents with a large mortgage might consider decreasing term policies to help insulate each other against the responsibility of meeting their financial obligations should something happen to one of them.