What does ManuProtect Decreasing cover?

Hi anon,

This is a decreasing term plan that provides death and TPD cover. A traditional, simple and straightforward term insurance.

It's usually used to cover the liabilities on a mortgage, as the payout amount drops in tandem with the outstanding mortgage (provided that you have provided the correct details regarding the interest rate and duration). Waiver riders may be added to it.

Usually, a level term plan might be considered as well, as the price different is not a lot, and yet the payout will be the full amount of the plan regardless of when it occurs.

For example:

A level term covering $1M for 25 years means that the payout will be $1M regardless of when it is paid, and you might pay, say, $1K/yr

A decreasing term covering $1M for 25 years means that the payout could be something like $60000 at the very last year. The premium might be something like $900/yr.

In view of this, if the extra $100/yr is not an issue, most people opt for a level term.