What type of life policy has a death benefit that adjusts periodically and is written for a specific period of time?

A decreasing term life insurance policy is designed with a death benefit that diminishes over time. This type of policy is typically set for a specific duration, providing coverage for a certain period, such as 10, 15, or 20 years. It's commonly used to align with temporary financial obligations, such as a mortgage or a loan, where the risk decreases as the principal balance is paid off.

With this structure, the initial death benefit is at its highest when the policy is purchased, but as time progresses, the value of the benefit decreases at a fixed rate. This feature serves to provide a cost-effective insurance solution for individuals anticipating lower financial responsibilities in the future.

Whole life insurance provides a level death benefit and builds cash value over the life of the policy, while level term policies offer a constant death benefit throughout the entire term. Universal life policies, on the other hand, offer flexible premiums and death benefits but also do not possess the decreasing benefit characteristic found in decreasing term policies.