Decreasing Term Assurance
Decreasing term assurance is a life insurance policy that pays out an amount if you die during the term of the policy. The amount of cover reduces each year.
It can be calculated so that it falls in line with your outstanding mortgage debt – meaning that over time the borrowers premiums also fall.
This type of policy is well suited to providing cover on a repayment mortgage.
Decreasing term assurance is usually cheaper than level term assurance.
Click for more mortgage glossary terms relating to remortgaging.