Nowadays people in general believe in owning their own houses. As the purchase of the house may involve a large sum of money, in the vast majority of cases, the purchaser may have to borrow some or the entire purchase price from a bank or finance company on interest.

As a security against the mortgage loan, the bank or the finance company will ask the borrower to purchase a Mortgage Protection Policy for the amount of loan granted.

Under this policy the sum assured decreases annually or monthly as the loan is being repaid by the borrower directly to his bank.