ltd-Mortgage Cover, Aberdeen-Mortgageshield


Decreasing Term Assurance


Decreasing Term Assurance to cover loan. 

 Diminishing term life assurance which is designed to pay off the mortgage in the event of death.

There are two main types of mortgage:

1.       The most popular is the repayment mortgage. This will need a decreasing term assurance (see below)

2.       An interest only mortgage will require a level term policy.

If you increase your mortgage you will need to affect a new policy to cover the extra borrowing.          

          The reducing sum assured will not take account of inflation.

          No investment element.

          You may be ill at the end of the plan and be unable to obtain further cover.

          You may want to extend term but this is not possible.

Decreasing Term Assurance Limitation.

          Premiums guaranteed not to increase from acceptance for the policy term.

          Cover reduces to match the outstanding mortgage amount. Ideal for repayment mortgages or loans.

          Accepted by most major lenders as suitable cover for your mortgage

          Normally includes terminal illness benefit as part of the standard policy

          Cover can be purchased with or without critical illness cover

          Low cost Protection cover used in conjunction with a repayment mortgage.

Decreasing Term Assurance Benefits

          Level premiums throughout term of policy.

          No surrender value.

          No benefit on survival.

          Sum assured is paid out on death during policy term.

          Sum assured reduces to reflect the outstanding loan amount each year.

          Fixed term of years selected to match your mortgage.

Decreasing Term Assurance Product Features