This is another type of life insurance, geared for the sole purpose of paying off your mortgage. Since what you owe on the mortgage reduces over time, the insurance cover and the premium also reduce over time. Hence the name, mortgage protection decreasing term assurance.
If you have a family or those who depend on you to make sure the mortgage payments are made, it may be worthwhile getting a mortgage protection decreasing term assurance. Apart from being geared to pay off your mortgage in the event you are incapable of doing so, it is less of a burden since the premium reduces over time. With a regular life insurance that provides other types of cover, such as medical payment and a lump sum at maturity or if you are incapacitated and cannot generate an income, your beneficiaries can use the money to carry on living a normal life. However, with a mortgage protection decreasing term assurance, your beneficiaries will receive enough money to make the mortgage payments only. Therefore with this type of insurance the premium you have to pay is far lesser than a regular life insurance.