Which insurance product typically decreases in sum assured over time?

Decreasing term assurance is specifically designed to decrease in sum assured over time, making it a fitting choice for this question. This type of insurance coverage is often used to align with a diminishing financial obligation, such as a mortgage or other loans. As the outstanding balance of these debts reduces, so does the sum assured. This structure allows policyholders to pay lower premiums compared to level or increasing term assurances, as the risk to the insurer diminishes along with the decreasing coverage.

Level term assurance maintains the same sum assured throughout the policy term, while increasing term assurance gradually raises the sum assured. Whole life insurance provides lifelong coverage with a guaranteed payout at death, thus maintaining a consistent sum assured until the end. Given these characteristics, decreasing term assurance aligns perfectly with the concept of a decreasing sum assured over time.