Decreasing term life policy is the life insurance policy where the payments to beneficiaries get smaller as time passes. Declining term insurance has cheaper rates than other types of term life insurance.
What is life insurance?
Life insurance is a contract between the person and an insurance provider. In return of the insurance payment the insurance company will pay the beneficiaries of huge amount.
The lump-sum amount is also called the death benefit amount which will get at the time of death of the insurance holder. The person's beneficiaries can spend the money on whatever they like.
Thus, Decreasing term life policy is the life insurance, where payments decrease as the time passes.
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