Question

Renee Warning has a life insurance policy where the payments to beneficiaries get smaller as time passes. What type of term life insurance does Renee likely have?

Answer 1

Answer:

Decreasing term insurance

Explanation:

Decreasing term insurance is renewable life insurance with a predetermined rate of  decline in coverage over the life of the policy.  

Premiums are generally continuous throughout the agreement,  and there are typically monthly or annual reductions in coverage.  

The idea behind the insurance maintains that certain obligations and  the associated need for elevated insurance rates are declining with age.