In decreasing term policy, the level of coverage will reduce by each year
. However, you are still required to pay for the same amount of premium every year. Just like other term life insurance policy, the coverage length will range from 1 - 30 years. Sometimes, the decreasing term policy is called mortgage life insurance. The theory of decreasing term policy is that a person will need lesser insurance as time goes by. People who don't hold other types of life insurance should not purchase decreasing term policy because it does not guarantee a level payout.