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Most term life insurance companies have guaranteed level death benefits and premiums for a specified number of years. For example, 10, 15, 20 and 30 years are the most popular plans.
There are some carriers that issue reducing term plans (often purchased to cover a mortgage) although they are not as popular as they were in the 80s and 90s.
I have searched high and low and have not been able to locate a decreasing Term life insurance policy for the past couple of years. The only way I know how to get actual life insurance to have a lower face amount each year is to get an annually renewable policy and take out a smaller amount the next year. All the Term policies I know of are level benefit, meaning that the death benefit stays the same for a set number of years.
No, the Term life insurance policies sold now nearly all stay level for the entire term. Decreasing Term was more popular in the past, but now the most competitive prices are for level term and you get the added bonus of the death benefit staying consistent for the full term.
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
Interesting question! Most Term policies have a "level" guaranteed death benefit up to the time of the end of the term for the policy. However if you take in to account inflation, which has averaged about 4% per year over the past 40 years, then the value of the death benefit definitely does decrease over time! This is an important consideration when weighing whether to purchase Term or Whole Life, because while the premiums increase with age of the insured, the value of the death benefit decrease due to inflation. For this reason Term insurance can be much more expensive than Whole Life when you consider benefits vs cost.
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There are some carriers that issue reducing term plans (often purchased to cover a mortgage) although they are not as popular as they were in the 80s and 90s.