Which statement about a decreasing term life policy is accurate?

A decreasing term life insurance policy is specifically designed so that the face amount, or death benefit, decreases over the life of the policy, typically in regular intervals. This type of policy is often used for specific financial responsibilities that diminish over time, such as a mortgage or a loan. As these obligations decrease, the coverage amount also reduces correspondingly, aligning with the insured's decreasing financial risk.

This structure contrasts with other types of life insurance policies; for example, traditional term policies often maintain a constant face amount throughout the duration, while some whole life policies accumulate cash value. Since decreasing term policies do not accumulate cash value and their face amount decreases, their primary function is to provide coverage that matches diminishing liabilities, making them a suitable and cost-effective option for particular needs.