Joel and Trish are married, have two children, and recently bought a house. Trish has stable employment with above average income and excellent group benefits including 3 times annual salary life insurance. Joel is successful working at home as a self-employed contractor. The couple has a large mortgage and cash flow is a concern, but they want to keep the home should Joel die early. They want the most cost effective coverage and are considering Decreasing Term Insurance to cover the mortgage. Which of the following is true about this product? Decreasing Term is cost effective since the premium decreases, matching the need with cash flow as time passes. Even though Decreasing Term has a declining death benefit and premiums are level, it is cost effective because the decrease is factored into the mortality cost. Decreasing Term is cost effective because at each renewal option the subsequent term is shorter, and this reduced risk is factored into the mortality cost. Even though Decreasing Term has a declining death benefit, the premiums also decline, so the cash flow matches the coverage amount, making it cost effective.