Decreasing Term Life Insurance is a cost effective way of arranging life assurance.

Decreasing Term Life Insurance is usually taken out to repay such things as loans and mortgages in the event of the death of one of the lives assured but can occasionally also be used to provide family protection cover.

It should be noted that the amount of Decreasing Term Life Insurance decreases during the term of the life insurance policy normally approximateley in line with the amount the loan or mortgage decreases so there should normally be sufficient life insurance cover in place to clear the liability in the event of the death of the life/lives assured during the policy term.

The premium normally remains constant but the amount of the premium reflects the fact that the life insurance cover is decreasing.

Decreasing Term Life Insurance is normally arranged either payable on a sole life or joint life first death basis.

In the event of the lives assured being alive at the end of the policy term the Decreasing Term Life Insurance policy normally finishes and nothing is payable.

Critical Illness cover can sometimes be included in Decreasing Term Life Insurance policies to pay out upon one of the policy holders being diagnosed with a specific critical illness.