Category: Specific protection products · Reviewed by Tim Roche, Director · PI & Commercial · Last reviewed 2026-06-10
Decreasing term assurance (DTA) for mortgage protection is a life assurance policy with a sum assured that reduces over the policy term, broadly matched to the reducing balance of a capital-and-interest repayment mortgage. On the death of the insured during the term, the benefit is intended to clear the outstanding mortgage. DTA is the standard protection product paired with a repayment mortgage; it is materially cheaper than level term assurance of equivalent initial sum because the average sum at risk over the policy term is lower.
Category: Specific protection products Also known as: DTA mortgage, mortgage decreasing term Pair with: Capital-and-interest repayment mortgage Related concepts: Mortgage protection insurance, Critical illness cover for mortgage protection, Family income benefit
The DTA sum assured normally follows the assumed mortgage interest rate over the policy term — typically calculated using a notional rate of 6%–8%. If the actual mortgage interest rate is materially below the policy assumed rate, the DTA sum assured may decline faster than the mortgage balance, leaving a shortfall on death. If actual rates are above the policy assumption, the cover may exceed the mortgage on death.
DTA is FCA-regulated as a pure protection contract under ICOBS. Where written in trust, the benefit is paid outside the deceased’s estate for IHT purposes (per s.21 IHTA 1984 and the principle that policies in trust are not part of the estate).
DTA cover terminates at the end of the policy term, typically matched to the mortgage term. A 25-year £200,000 DTA matched to a 25-year £200,000 repayment mortgage on a 7% interest assumption will see the sum assured decline approximately in line with the mortgage balance over the term.
A couple aged 35 take out a £250,000 25-year repayment mortgage and a £250,000 25-year DTA on a joint life first death basis. Premium is approximately £20 per month. If one of them dies in year 5, the DTA benefit (approximately £222,000 based on policy schedule) is paid to clear the outstanding mortgage balance.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
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