What happens to the death benefit in Decreasing Term Insurance?

In Decreasing Term Insurance, the death benefit is designed to decrease over the term of the policy, typically in a structured manner, such as annually. This type of insurance is particularly suited to cover obligations that decrease over time, such as a mortgage. For instance, as the outstanding balance on a mortgage reduces with each payment, the life insurance benefit also dwindles, aligning with the decreasing risk, since there is less debt left to cover in the event of the policyholder's death. This structured reduction in benefits allows for lower premiums compared to level term policies.

Thus, the characteristic of the death benefit decreasing each year is a fundamental aspect of Decreasing Term Insurance, making it the correct choice for this question.