Decreasing Cover

This type of policy is designed to cover either your whole mortgage amount, or just part of it. The level of cover reduces each month roughly in line with the outstanding balance on a standard repayment mortgage. This type of policy is also sometimes known as Decreasing Term Cover, or Decreasing Term Life Insurance.

If the person insured dies during the policy term, or if they are diagnosed as suffering from a Terminal Illness, the policy will pay out the amount of cover remaining at that point in time. The premiums paid will remain fixed throughout the policy term.

Once the sum insured has been paid out there are no further premiums to pay and the policy ends. The policy has no cash in value at any time.