Term Life 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 cover is decreasing during the term of the life policy normally in line with the amount the loan or mortgage decreases so there should normally be sufficient life 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 cover is decreasing.
Decreasing Term Life 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 policy normally finishes and nothing is usually payable.
Critical Illness cover can sometimes be included in Decreasing Term Life policies but at additional cost.
You should carefully read the Key Features document provided by the company or financial adviser relating to this type of life cover which will provide full details of this type of life cover.
There are a large number of life companies offering Decreasing Term Life cover and you should ideally contact a financial adviser for advice in respect of such cover.
Article Source: Articles Beyond Better
Alan Hope runs a lifestyle management and concierge service business for both UK and Overseas clients.Visit his website at www.arrangeitlifestylemanagement.co.uk/id128.html
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