What is decreasing term life insurance?

This is a type of life insurance policy in which the payout upon death gradually decreases over the term of the insurance. This means that as the insured person gets older, the amount paid out to the beneficiaries becomes progressively lower. This type of insurance is often used in combination with a mortgage loan, where the insurance payout decreases as the mortgage debt is repaid. It is also applied when establishing a pension private limited company (pensioen-BV), where the decreasing risks as pension accrual progresses are covered.