Mortgage (Decreasing) Term Insurance

Decreasing Term Insurance is most commonly used to protect a repayment mortgage. The chosen amount of cover will decrease over the duration of the policy term, in line with the reduction of your mortgage balance.

Insurance Example:

Capital Repayment Mortgage balance of £200,000 with a mortgage term of 20 years. As long as repayments are up to date at the midway point in the mortgage term, should the policy holder pass away, a sum of £100,000 would be paid to the deceased estate providing the funds to pay off the outstanding mortgage amount.

Cost effective Insurance

Decreasing Term Insurance is the most cost effective way of protecting your Capital Repayment Mortgage or other financial liability which reduces over time with repayments.