What is the characteristic of decreasing term insurance?

Decreasing term insurance is structured in such a way that the death benefit decreases over the life of the policy while the premiums remain constant. This means that as time goes on, the amount that would be paid out to beneficiaries in the event of the policyholder's death declines, but the amount the policyholder pays in premiums does not change.

This type of insurance can be attractive to individuals who have specific financial obligations that diminish over time, such as a mortgage or education expenses. Since these obligations decrease, it makes sense to have a death benefit that aligns with the decreasing financial responsibilities, while enjoying the predictability of level premium payments throughout the policy's term.

So, option C accurately captures the essence of decreasing term insurance by indicating that while the coverage declines, the premium that the policyholder pays remains stable throughout.