Decreasing term assurance meaning

A life assurance policy for a fixed term in which the death benefit (sum assured) reduces on a pre‑agreed schedule, commonly to track a repayment mortgage or other declining liability. If the life assured dies during the term, the insurer pays the then‑current sum assured; if no claim arises, cover ends at expiry and the policy has no surrender or maturity value. This is a descriptive insurance market term, not one defined by legislation or case law, and its usage is broadly consistent across England and Wales, Scotland, Northern Ireland and Ireland. Key features and practice points: - Fixed term with a decreasing benefit; premiums are typically level and guaranteed. - Often used for mortgage protection; generally unsuitable for interest‑only loans. - May be written on a single‑life or joint‑life (first death) basis, and commonly assigned to lenders as security. - Policy conditions govern underwriting, exclusions (for example suicide and non‑disclosure), and any riders (for example critical illness). - Consumer disclosure and remedies are governed by UK law (CIDRA 2012; Insurance Act 2015 for non‑consumer contracts) and in Ireland by the Consumer Insurance Contracts Act 2019; sales and advice are regulated (UK: FCA/PRA; Ireland: Central Bank of Ireland).