Decreasing Term Assurance

DECREASING TERM LIFE INSURANCE

There are two main types of mortgage:

1.	The repayment mortgage. We suggest a decreasing term life assurance policy (see below).
2.	An interest only mortgage. We suggest a level term assurance policy.

Decreasing Term Assurance (to cover a loan) is a form of Mortgage Protection

Decreasing Term Assurance Product Features

	Fixed term of years selected to match your mortgage.
	Sum assured decreased to reflect the outstanding loan amount each year.
	Sum assured is paid out on death during the policy term.
	No benefit on survival.
	No surrender value.
	Level premiums throughout the term of the policy.

Reducing Term Life Assurance Policy Benefits

	Low cost protection cover used in conjunction with a repayment mortgage.
	Cover can be purchased with or without critical illness cover.
	Normally includes terminal illness benefit as part of the standard policy.
	Accepted by most major lenders as suitable cover for your mortgage.
	Cover reduces to match the outstanding mortgage amount. Ideal for re payment mortgages or loans.
	Premiums guaranteed not to increase from acceptance for the policy term.

Reducing Term Cover Policy Limitation

	You may want to extend the term, but this is not possible.
	You may be ill at the end of the plan and be unable to obtain further cover.
	No investment element.
	The reducing sum assured will not take account of inflation.
	If you increase your mortgage you will need to affect a new policy to cover the extra borrowing.

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