Jargon Buster - Definition of Decreasing Term Assurance
Please select your letter of choice below to see the list of terms:
- Decreasing Term Assurance
is a life insurance policy that has a value which decreases each year. For example a policy taken out for £100,000 may decrease to £98,000 the following year and then £94,000 the year after, and so on until the policy ends. The advantage of decreasing policies is that they are cheaper than Level Term Assurance policies. Decreasing Term Assurance polices are often used to cover repayment mortgage and loans.
Please note that all definitions are intended for general guidance only. For official and current definitions you should always double check your policy wording.
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