The least expensive of the Term Assurances, Decreasing Term Assurance does what it says on the label. The level of benefit decreases as the term of the policy runs; the premiums do not however reduce. The premiums are fixed throughout the policy term, and the premium level is lower than that of Level Term Assurance as a result of the decreasing benefit. This type of life assurance is commonly used to protect Capital & Repayment mortgage debt. Typically the policy reduces the protection assuming a Mortgage Interest Rate of 10%.
Provides A Lump Sum On Death Or Terminal Illness Which Can Be Used To Cover Outstanding Repayments On A Mortgage Or Loan.
If You Die Within The Term Of The Policy, It Will Pay Out A Lump Sum, To Help Clear Whatever Is Outstanding On Your Debt At That Point, However, There Is No Guarantee That The Lump Sum Paid Will Enable You To Clear Your Outstanding Debt In Full.