Decreasing Term Assurance to cover loan. 

Diminishing term life assurance which is designed to pay off the mortgage in the event of death.

There are two main types of mortgage:

1.       The most popular is the repayment mortgage. This will need a decreasing term assurance (see below)

2.       An interest only mortgage will require a level term policy.

Decreasing Term Assurance Product Features

·          Fixed term of years selected to match your mortgage.

·          Sum assured reduces to reflect the outstanding loan amount each year.

·          Sum assured is paid out on death during policy term.

·          No benefit on survival.

·          No surrender value.

·          Level premiums throughout term of policy.

Decreasing Term Assurance 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 repayment mortgages or loans.

·          Premiums guaranteed not to increase from acceptance for the policy term.

Decreasing Term Assurance Limitation.

·          You may want to extend 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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