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Decreasing Term assurance is another type of life assurance policy, often used to cover mortgage payments.
The payout sum on the policy will reduce over time, as the outstanding amount on a mortgage loan reduces. Some lenders require their borrowers to have a life assurance policy of this type before they will provide the mortgage loan.
With Decreasing Term assurance your mortgage repayments will be covered in the event of your death.
Increasing term assurance refers to a policy that can be renewed at the end of a certain period for a higher monthly contribution that increases the sum paid out. That way, whenever the payout sum is increased the monthly contribution also increases. These policies often include conversion options.
Renewable Term assurance refers to a life assurance policy that is renewable following the set expiry date (usually at the age of 65.) Whenever a renewal date is reached the cost of the premiums will increase.