A former insurance producer, Laura understands that education is key when it comes to buying insurance. She has happily dedicated many hours to helping her clients understand how the insurance marketplace works so they can find the best car, home, and life insurance products for their needs.

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Written by Laura Berry
Former Insurance Agent Laura Berry

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com.

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Reviewed by Daniel Walker
Licensed Car Insurance Agent Daniel Walker

UPDATED: Nov 30, 2021

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It’s all about you. We want to help you make the right life insurance coverage choices.

Advertiser Disclosure: We strive to help you make confident life insurance decisions. Comparison shopping should be easy. We are not affiliated with any one life insurance provider and cannot guarantee quotes from any single provider.

Our life insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from top life insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about life insurance. Our goal is to be an objective, third-party resource for everything life insurance-related. We update our site regularly, and all content is reviewed by life insurance experts.

Don't Miss These Facts

  • Decreasing term life insurance can be bought where the length of term corresponds to a mortgage or loan
  • Buying from life insurance companies that sell decreasing term life insurance can be cheaper than other types of insurance
  • Highly-rated companies that sell decreasing term life insurance include AIG, John Hancock, Mutual of Omaha, and Progressive


Term life insurance is one of the most popular types of life insurance because it’s affordable. One subcategory of term life is decreasing term life insurance. If you’re looking for life insurance companies that sell decreasing term life insurance, you’ve come to the right place.

It can be hard to pick from the many options out there. It’s even harder to know what to look for when picking a life insurance company without doing research. This guide will show you exactly how to choose life insurance companies and tell you more about decreasing term life insurance and its benefits.

Ready to look for affordable life insurance companies that sell decreasing term life insurance? You don’t have to wait. Get decreasing term life insurance quotes right now. Just enter your ZIP code into our free tool.

What are the top decreasing term life insurance companies?

Your location, the amount of coverage you want, and how much you want to pay will all affect which decreasing term life insurance company you choose. Here are the top companies that provide the best term life insurance.

  • AIG
  • Farmers
  • Guardian Life
  • Haven Life Insurance Agency
  • John Hancock
  • Lincoln National
  • Mutual of Omaha
  • New York Life
  • Northwestern Mutual
  • Pacific Life
  • Penn Mutual
  • Protective Life
  • Prudential
  • State Farm
  • Transamerica

Not all companies offer coverage in every location or to every customer, though. The best way to choose a company is to get a quote.

Enter your zip code below to view companies that have cheap life insurance rates.

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How can I pick a decreasing term life insurance company?

Although our list has a lot of top insurance companies, even smaller, lesser-known companies can offer you great policies if you shop around. The important thing is to look at ratings, reviews, and other factors to pick one that you feel comfortable with.

Here are the main things to look for when choosing a company.

  • Company reputation
  • Customer service and satisfaction
  • Pricing and rates
  • Financial strength
  • Ease of managing your policy
  • Discounts available

You don’t have to choose the first company you get a quote from. Compare rates from different companies that offer decreasing term life insurance in order to get the best deal.

Decreasing Term Life Insurance Defined

So, what is decreasing term life insurance anyway?

Decreasing term life insurance is a special kind of term life insurance. Term life insurance lasts for a set period, usually 10 to 30 years. If the insured person dies during that time, the insurance company pays a death benefit.

Decreasing term life insurance has a certain coverage or payout amount that gets lower and lower over time. While it may sound like a strange idea, it actually has many benefits.

The two main features that make decreasing life insurance attractive are, first, it offers lower rates than other types of life insurance policies. Secondly, it can be used to cover debts. It’s a popular choice for those with mortgages.

Say you have a mortgage with a term of 20 years. You can buy a policy that is also 20 years to match it. You can also use this type of life insurance to cover personal or business loans.

Alternatives to Decreasing Term Life Insurance

There can be drawbacks to decreasing term life insurance. The main one is that if you, the insured person, outlive the policy, the money will not be repaid to you. Here are some other options if you are considering your life insurance choices.

Whole Life Insurance

After a term life policy expires, the rates could go up. So it’s possible you will pay more as you get older, especially if your health is worse than before.

If you don’t mind spending more, whole life insurance could be an alternative to term life insurance. Whole life insurance will cover you for your entire life (that’s why it’s called whole life).

It also has a cash value, which builds up over time. You can use this savings component to borrow or take out money when you need it. So if you’re looking for the best life insurance companies that pay out, whole life insurance could be your best option. 

The only drawback is that whole life insurance is much more pricey than buying a decreasing term life policy.

Other Term Life Policies

Still interested in term life insurance? You have other options besides decreasing term life when it comes to the best term life insurance policy for you.

The other type of term life policy is called a “level” term — level meaning that it stays the same. So if you die within the term or period it’s active, you will get the same benefit amount.

Another option to look into is a yearly or annually renewable term policy. This type of insurance can be renewed year after year. This is true even if the policyholder’s health changes or any other changes to their insurability occur.

The rate paid remains the same. However, the insurance company can raise the rate after the term is over, so it can be costly if this happens as you get older.

Enter your zip code below to view companies that have cheap life insurance rates.

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Life Insurance Companies That Sell Decreasing Term Life Insurance: The Bottom Line

Hopefully, this guide has shown you that there aren’t many life insurance companies that don’t sell decreasing term life insurance.

You have a wide choice of options, but how do you narrow them down? The best way is to compare rates from life insurance companies that sell decreasing term life insurance. Pay close attention to consumer reports as well.

Use our free tool now by entering your ZIP code, and you can find a life insurance company that sells decreasing term life insurance.