Decreasing term assurance is much the same as standard term
assurance in so much as it runs for a specified period of
time and carries no cash in value at any time.
However decreasing term assurance differs in the fact that
the level of cover decreases as the years roll by.
This type of cover has many uses but mainly it is used to
cover repayment mortgages and loans as the fact that the
cover reduces year in year out matches that of the falling
level of debt if you are repaying it.
Due to the fact that the level of cover is reducing , and
therefore the liability on the life insurance company is
also reducing, you will find that decreasing term insurance
is quite a bit cheaper than ordinary level term assurance
Like all types of life insurance you can also have
additional benefits such as Critical illness and waiver of
premium benefit. |
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