A life insurance policy that pays out a lump sum in the event of death. The amount paid out can be calculated so that it fall in line with your outstanding mortgage debt – meaning that over time the borrowers premiums also fall. This type of policy is well suited to providing cover on a repayment mortgage.
An insurance policy that pays out a lump sum under the terms of the policy (typically on death of a policy holder) during the term of the policy. Decreasing term refers to the fact that the benefit decreases throughout the term. It is often set up to protect a capital & interest mortgage.
Decreasing life cover decreases at a flat, fixed rate each year.
life assurance where the amount of cover reduces over time to reflect a decreasing mortgage balance.
Life assurance for a fixed period of time or specified age but where the sum assured decreases each year. At the end of the term the sum assured has decreased to a very low level and the policy comes to an end without value. This type of policy is normally used to protect a capital repayment mortgage and is commonly known as mortgage protection assurance.
Life insurance which decreases over the term of the policy.
Life assurance that pays out an amount if you die during the term of the policy. The amount of cover reduces each year. So, this makes it ideal to cover repayment mortgages where the amount you owe the lender reduces each year. Decreasing term assurance is usually cheaper than level term assurance.
Decreasing Term Assurance indicates that the sum assured decreases over the term of the policy. This is commonly used to protect a capital & interest repayment mortgage, where the outstanding balance reduces during the life of the borrowing.
life assurance where the amount of cover reduces each year
An assurance policy where the sum assured decreases yearly. Often used as a mortgage protection policy – as the mortgage is paid off the need for assurance diminishes. See Level Term Assurance
A term assurance policy where the death benefit falls at regular intervals over the term of the policy. Often used to protect Repayment Mortgages
Temporary life assurance under which the sum assured is reduced from time to time.
a term assurance plan designed to reduce its cover each year decreasing to nil at the end of term. Decreasing term cover is most commonly used to cover a reducing debt or repayment mortgage.
this term refers to a type of insurance in which the sum insured gradually reduces throughout the term of the policy until it decreases to zero at the end of the term. Mortgage protection life insurance is of this type.