Decreasing Term Life Insurance is a cost effective way of
arranging life assurance over a specific period of time and has
been available in the UK for many years.
 
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. Assuming that there is sufficient life
cover in place with the policy to clear the loan or mortgage
then the survivor i.e. the partner will not need to continue
with the loan or mortgage repayments thus aiding their
financial budget.
 
The amount of Decreasing Term Life Insurance cover is
decreasing during the term of the life insurance policy
normally 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.
 
The premium usually remains constant during the term of the
policy but the amount of the premium reflects the fact that the
life insurance cover is decreasing.
 
Decreasing Term Life Insurance cover is normally arranged
either payable on a sole life basis 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 usually payable.
 
Critical Illness cover can sometimes be included in Decreasing
Term Life Insurance policies but at additional cost.
 
You should carefully read the Key Features document provided by
the insurance company or financial adviser relating to this type
of life insurance cover which will provide full details of this
type of life insurance cover.
 
There are a large number of life insurance companies offering
Decreasing Term Life Insurance cover and you should ideally
contact a financial adviser for advice in respect of such
cover.

About The Author: Alan Hope runs a lifestyle management and
concierge service business for both UK and Overseas clients.
Visit his website at
http://www.arrangeitlifestylemanagement.co.uk/id128.html