decreasing term insurance

noun

1. a life insurance policy providing a death benefit that decreases throughout the term of the contract, reaching zero at the end of the term.

Example Sentences

NB, Birmingham I am appalled that a broker should sell you a decreasing term insurance policy with an interest-only mortgage because the amount the policy pays out steadily reduces, whereas you are paying only interest on the loan, so the sum you borrowed stays the same until you pay it all off in one go.

From The Guardian