D E C R E A S I N G   T E R M  
A S S U R A N C E

Or DTA as it is also known.

This type of plan is designed to provide a lump sum on death but as time goes by the sum assured reduces. This could be for many reasons but mainly for a decreasing liability for example Inheritance Tax Planning where you might be covering a tax bill that is diminishing over say the 7 year potentially exempt transfer rule.

This type of plan can also be used for the repayment of any outstanding loan on a repayment mortgage. The payout will normally be made on the death of one of the mortgagees.

There is no value to the policy once the mortgage has been repaid. Again if there is no claim on the plan at the end date it will cease without value.