Meaning & use

decreasing term life assurance

noun·AdvancedfinanceBritish

Last updated

UK/dɪˌkriːsɪŋ tɜːm ˈlaɪf əˌʃɔːrəns/
US/dɪˌkriːsɪŋ tɜːrm ˈlaɪf əˌʃʊrəns/

Meanings

  1. noununcountablefinanceBritish

    A life insurance policy whose payout falls over the years while the premiums stay the same, often used to cover a mortgage.

    Grammar: Uncountable, so no plural: say 'a decreasing term life assurance policy' if you need to count it.

    Patterns

    • take out decreasing term life assurance
    • a decreasing term life assurance policy
    • decreasing term life assurance covers something

    They took out decreasing term life assurance so the payout would shrink along with their mortgage.

    Decreasing term life assurance is cheaper than level term cover because the sum insured falls each year.

    Her adviser explained that decreasing term life assurance is designed to match a repayment loan.

  2. noununcountablefinancebusiness

    This type of cover considered as a product sold by insurers.

    Grammar: Used without 'a' when talking about the product in general.

    Patterns

    • sell decreasing term life assurance
    • compare decreasing term life assurance

    The broker compared decreasing term life assurance with level term policies.

    Fewer banks now sell decreasing term life assurance directly.

Common combinations

decreasing term life assurance policy
Their decreasing term life assurance policy runs for twenty-five years.
take out decreasing term life assurance
We took out decreasing term life assurance when we bought the house.
decreasing term life assurance cover
Decreasing term life assurance cover is often paired with a repayment mortgage.
level term life assurance
Unlike decreasing term life assurance, level term life assurance pays the same amount throughout.

Synonyms and how they differ

mortgage protection insurance
A broader everyday term for cover that pays off a home loan; it may or may not decrease in value.
decreasing term insurance
The common American wording; 'assurance' is the usual British term for life cover.

Opposites

level term life assurance

Word family

assurance noun
A promise or guarantee; in British finance, life insurance.
assure verb
To tell someone confidently that something is true.
term assurance noun
Life cover that pays out only if the person dies within a set period.

Commonly confused: decreasing term life assurance or insurance? decreasing term life assurance or decreasing term insurance?

decreasing term life assurance vs insurance

'Assurance' in British English usually means life cover, which is certain to pay out eventually; 'insurance' covers events that may or may not happen.

decreasing term life assurance vs decreasing term insurance

Same idea, but the American wording; use 'assurance' with British providers.

Practice

Which sentence uses the term correctly?

Make it your own

Write a sentence using “decreasing term life assurance”, then check it and compare it with the examples above.

Your sentence stays on this page and is not sent anywhere.

Explore more words