Decreasing Term Assurance

This is the most simple type  of policy offering a fixed and predetermined benefit at the outset. The vast majority of protection policies, particularly Term Assurance are non-profit but this should be differentiated from savings policies because, although some Term Assurance contracts do have an element of investment within them the investment returns offered are often poor. A decreasing term assurance decreases in value in line with a loan / mortgage / PET and would normally be used simply to cover the life of the party/parties to a loan for the term of such a loan.