Policy snapshot
A term insurance plan where the cover reduces over time, aligned to an outstanding loan such as home or business loan.
What is Loan Protection Term Insurance?
Loan Protection or Decreasing Term Insurance is structured so that the sum assured declines broadly in line with a loan balance.
What can it cover?
- Death benefit aligned to outstanding loan
- Cover reduces over time
- Often bundled for home or mortgage loans
Who should consider it?
- Home loan borrowers
- Business owners with large term loans
Key features to understand
- Protects family from loan burden
- Lower premium than equal level term for same initial sum assured
What deserves attention before you buy?
Coverage, exclusions, sub-limits, deductibles, waiting periods, warranties and underwriting can vary between insurers and policy versions. The policy wording and schedule remain the definitive contract. Novo can help you review the relevant terms for your requirement.
Read the wording, not just the brochure
The schedule and policy wording determine the actual contract.
Compare meaningful differences
Look at exclusions, limits, deductibles, conditions and claim requirements—not premium alone.
Think beyond purchase
Servicing and claims-related support can matter as much as placement.
Frequently asked questions
It is mainly for loans; a separate level term cover is usually recommended for broader needs.