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What is Decreasing Term Insurance/Mortgage Life Insurance?

April 26, 2017decreasing Insurance Life Insurance mortgage mortgage life insurance term

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What is Decreasing Term Insurance/Mortgage Life Insurance?

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Decreasing term insurance also known as mortgage life insurance is catered especially for your mortgage. The pay out amount of the policy decreases in line with your mortgage and can be purchased on a single or joint life basis where the sum assured will be paid out in the event of the first policy holder’s death only. Because the sum assured decreases during the term the premium can usually be a lot lower than that of other life insurance products because you are only paying for the cover that you need.