What are the disadvantages of a term life insurance policy?

The main drawback is the death benefit declining over time, which is of course why it costs less than standard term life or other policies. Also, should something happen down the road, decreasing term life may not provide the coverage needed. Saving a few dollars in the short term may leave you uncovered should a future event occur.

Is decreasing term life insurance a good idea?

Decreasing term life is more affordable: Term life insurance is generally cheaper than permanent policies like whole life and universal life. And decreasing term life insurance is typically even more affordable than standard term life policies since the payout gets smaller over time.

What is a declining term life insurance policy?

It's free, simple and secure. Decreasing term life insurance is a policy in which the benefit declines on either a monthly or annual basis. The size of the policy continues decreasing until either the policy pays out or the end of the coverage period.