Decreasing Term Life Assurance

The Cheapest Life Insurance to Cover a Repayment Mortgage

Decreasing Term Assurance (DTA) pays out a lump sum in the event of death, which reduces during the term of the plan. At the outset you choose the initial sum assured you would like and the term of the plan.

During the life of a decreasing term life assurance policy the sum assured reduces every month in gradual steps to nil at the end of the term. A decreasing term life insurance policy would normally be used to cover a mortgage or other loan where the amount owed reduces each month as you make loan repayments, such as a repayment mortgage.

Decreasing Term cover ensures that the amount of cover is tailored to just cover the loan and no more each month. This makes it the cheapest life insurance to cover a repayment mortgage. Decreasing life Insurance is cheaper than Level Term Assurance.

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