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.
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Sum assured is paid out on death during the policy term.
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No benefit on survival.
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No surrender value.
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Level premiums throughout the term of the policy.
Reducing Term Life Assurance Policy Benefits
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Low cost protection cover used in conjunction with a repayment mortgage.
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Cover can be purchased with or without critical illness cover
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Normally includes terminal illness benefit as part of the standard policy
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Accepted by most major lenders as suitable cover for your mortgage
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Cover reduces to match the outstanding mortgage amount. Ideal for re payment mortgages or loans.
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Premiums guaranteed not to increase from acceptance for the policy term
.
Reducing Term Cover Policy Limitation.
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You may want to extend the term, but this is not possible.
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You may be ill at the end of the plan and be unable to obtain further cover.
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No investment element.
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The reducing sum assured will not take account of inflation.
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If you increase your mortgage you will need to affect a new policy to cover the extra borrowing.
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