Military decreasing term insurance
The least expensive of the term insurance, military decreasing term insurance can be a good option for those with a capital and repayment mortgage, where the amount outstanding reduces year on year. The level of benefit decreases as the term of the policy progresses.
The premiums are fixed throughout the policy term, but the premium level is lower than that of level term insurance as a result of the decreasing benefit.
Typically, the policy reduces the protection, assuming a mortgage interest rate of 10%. Many are paying mortgage interest at around 5%. Providing interest rates don’t go above 10%, the benefit should reduce more slowly than the mortgage debt, ensuring repayment of the mortgage debt in full (although there is no guarantee that the level of cover will match the outstanding debt upon a claim).
What you need to know about military decreasing term insurance
Before taking out any form of life insurance, we at Forces Advice would recommend talking with an advisor. We have field based advisors who can visit you on camp. Everyone’s need are different and we offer a range of policies from a panel of insurers, so the precise details of what is and isn’t included can vary. However, here are some typical points to remember when it comes to military decreasing term insurance:
Advantages of decreasing term life insurance include:
- It provides a lump sum on death, or diagnosis of a terminal illness, which can be used to cover outstanding repayments on a mortgage or loan
- If you die within the term of the policy, it will pay out a lump sum to help clear whatever is outstanding on your debt at that point
Please bear in mind:
- Military life insurance policies will only pay out once within the agreed term, so if the policy pays out for a terminal illness claim, the policy, the policy and cover will end
- Paying out on diagnosis of terminal illness may be proportionate to the level of cover under a death claim
- Military decreasing term insurance is based on an assessment of your health
- There is no guarantee that a military decreasing term life insurance payout will clear all your debts
- The plan will have no cash value at any time, and will cease at the end of the term. If premiums are not maintained, the cover will lapse
Why buy military decreasing term life insurance from Forces Advice?
A completely independent specialist military insurance broker, Forces Advice was established and is run by Martyn Barberry and John Sykes who both enjoyed careers in the British Armed Forces before qualifying and working in the finance and insurance sector. Even today, the team at Forces Advice is made up of 60% ex-military personnel. We combine a professional understanding of the insurance needs of British servicemen and women with an in-depth professional knowledge of the insurance marketplace.
Military convertible term life insurance is just one of many policy types that we can offer our clients. We take time to get to know you, understand your particular circumstances before recommending any particular product. We’re not tied to a single insurer, so look to offer genuine choice.