Decreasing Term Assurance is usually used to protect a loan repayment, such as a mortgage that reduces in value as the loan is gradually repaid. This type of insurance is the simplest and cheapest form of life assurance. The main features of Decreasing Term Assurance are:

• Policy can be set up on an Own Life / Joint Life first death / Life of another basis.
• Sum Assured or Death Benefit reduces at a set percentage rate (usually between 5% to 12%) to reflect the outstanding mortgage loan amount.
• Sum Assured is paid out on death during the policy term.
• Fixed term of years selected to match your mortgage.
• The premiums are guaranteed to remain the same throughout the policy term.
• A terminal illness benefit is included as part of the standard policy.
• Cover can include Critical Illness cover for an increase in your premium.

Please note that this type of insurance has no surrender value, and no money is paid out if you survive the policy term. If you increase your mortgage you will need to take a new policy to cover your extra borrowings.