What is the primary feature of decreasing term insurance?

Decreasing term insurance is characterized by a decline in the policy's face value over the duration of the term. This type of insurance is often designed to fit the needs of policyholders who may require life insurance coverage that correlates with a decreasing financial obligation, such as a mortgage or personal loan.

As the borrower's balance on these debts decreases over time, the corresponding life insurance coverage also decreases. This structure makes it a cost-effective option for individuals looking for temporary coverage that reflects their diminishing need for a large death benefit. The premiums generally remain level throughout the term, but the key characteristic that defines decreasing term insurance is the reduction in face value.

The other options do not accurately describe the nature of decreasing term insurance. An increasing face value is characteristic of a different type of policy, while cash value accumulation is typically associated with permanent life insurance policies rather than term policies. Additionally, a fixed premium for life applies to whole life or other types of permanent insurance, not to decreasing term insurance.