Definitions for "Decreasing term assurance"
Keywords:  assured, repayment, nil, sum, life
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.
Keywords:  svr, ltv, variable, standard, value
LTV Loan to value. SVR Standard variable rate.