Decreasing Term Assurance
Decreasing Term Assurance is the insurance in which the company undertakes to pay the sum assured in case of the death of the insured during the insurance period, and in return annual premiums are paid until the end of the contract or until the date of death and provided that the sum assured decreases annually (by the percentage of the sum assured on the insurance period).
For example, if the sum assured of 1000 Egyptian pounds for 5 years, the sum assured decreases annually by 1000/5 = 2000 Egyptian pounds.
If the death occurred in the second year for example (Allah forbid), the amount owed is 800 Egyptian pounds.
This class of assurance has no value of the reduction or value of the recovery.