What is a common use of decreasing term life insurance?

Decreasing term life insurance is often used for mortgage protection because it is specifically designed to align with the decreasing balance of a mortgage over time. As the borrower makes payments on the loan, the amount owed decreases, and the coverage amount of the insurance also decreases correspondingly. This type of insurance ensures that if the insured passes away before the mortgage is fully paid off, there will be sufficient funds available to cover the remaining mortgage balance, providing financial security for the borrower's family. This tailored relationship between the insurance coverage and the mortgage balance makes it a popular choice for homeowners seeking to protect their loved ones from the burden of mortgage debt in the event of their untimely death.

Retirement planning, college funding, and investment growth do not align with the primary purpose of decreasing term life insurance, as those financial goals typically require different types of insurance products or investment strategies that provide either permanent coverage or the potential for cash value accumulation.