This is a term assurance with a sum assured which reduces each year by a stated amount and decreases up to nil at the end of the policy term. It is normally used to cover the outstanding loan on a house purchase mortgage.
Although the cover decreases each year, the premium remains constant and is normally payable for a shorter period than the policy term.
NB. Group Mortgage Schemes are available to cover beneficiaries of mortgage scheme operated by organizations for the benefit of their employees.