Definitions for "Decreasing Term Insurance"
A form of term life insurance in which benefits are reduced over the term of the policy.
A term life insurance policy with a level premium and a death benefit that decreases over time. Decreasing term insurance is sometimes used as mortgage cancellation insurance, with the death benefit reducing as the principal amount of the mortgage declines over the term of the mortgage.
Life insurance 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 insurance.