Decreasing Term

A Decreasing Term policy works in much the same way as a level term assurance policy - you choose the term and the level of cover you want from the outset, however unlike a level term assurance, the sum assured decreases over the term of the policy.

These are predominately used for people with loans or debts where the capital outstanding reduces over time and the decreasing term policy follows suit to ensure that should the life assured die within the term, any outstanding monies are fully repaid to settle the loan.

Note that as with any term assurance, any sum assured will be paid as a lump sum and only within the term.

There is no investment element associated with these types of policies, therefore if you survive the term, you will get nothing back.Furthermore these policies have no surrender value and cover would cease should premiums stop being paid.