Life Insurance has 2 main forms:

 

1. Decreasing Term Assurance: This type of policy provides coverage for a specified period, typically used to protect a mortgage. The insured amount decreases over time in line with the outstanding mortgage balance. If the policyholder passes away during the term, the policy pays out a lump sum to help repay the remaining mortgage, providing financial security for the family or dependents.

2. Level Term Assurance: With level term assurance, the insured amount remains fixed throughout the policy term. If the policyholder dies within the specified term, the policy pays out a predetermined lump sum to the beneficiaries. This type of policy is often used to provide a consistent amount of financial protection for loved ones or to cover specific debts or expenses.

In summary, decreasing term assurance is typically used to cover mortgage-related debts, where the coverage amount decreases over time. On the other hand, level term assurance offers a consistent payout and is often used for general family protection or to cover fixed financial obligations.

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Disclaimer: 

As with all insurance policies, conditions and exclusions will apply. The cost of this insurance depends on several factors, such as your age, where you live, and your occupation. As a result, the cost you will pay is based on your own circumstances.