Life Insurance Search

As with a level term policy, decreasing term life insurance does exactly what it says: it decreases over time.

It's often also known as mortgage protection and most people who use it do so to ensure that any mortgage they're partly responsible for will be covered in that event that they die unexpectedly.

For example, if you and a friend have bought a house together and it cost £200,000, you’re probably each responsible for £100,000. If you're killed by a bus and you've only paid off £5,000 from your half of the mortgage, your friend is unlikely to be able to afford to continue paying his half as well as yours and he could face having to sell up and lose out on his investment.

If you had a decreasing term life insurance policy, however, the outstanding amount of your mortgage will be covered, meaning a lump sum big enough to pay off whatever you owe will be paid out on your death.

When you first set up your decreasing term life insurance plan, you'll be able to customise it to your specific needs. For example, you'll be able to specify how long you want the cover to last for and how much you want it to be worth.

How much it'll cost you each month is entirely dependant on the length and level of cover you desire. So if you want a policy that's initially worth £200,000 over the course of 40 years, it's going to be more expensive than cover beginning at £50,000 and decreasing over the course of 20 years.

It's worth noting that decreasing term life insurance can often be the cheapest type of life insurance on the market, so if you're a bit tight for cash - and face it, aren't we all at the moment – it could just be the protection you're looking for.

It won't just be the length of cover you're after and the amount of money you want paid out that'll influence the cost of your monthly premium, however. Your age and your general health will also play a part as, really, the insurance provider just wants to know how likely you are to die during the course of the policy.

If you don't smoke, or even if you've quit smoking as recently as a year ago, the cost of your life insurance premium will be considerably less than someone who puffs away on forty a day.

Your family history will also be considered when you apply for decreasing term life insurance so it might cost a bit more if cancer, heart disease or something similar has affected your parents or siblings.

You'll have to answer a few questions about your general health and your lifestyle habits when you complete your life insurance paperwork, but you can be sure that it'll all be kept strictly confidential. It's also worth pointing out that it's imperative you answer all questions honestly, because if you do die and it comes to light that you lied about your health, the insurance provider would legally be able to not pay out to your dependents.

Very occasionally, arranging a life insurance policy means you have to undergo a brief medical. This will only be the case if there's some aspect of your health that the provider wants confirmation about, and it'll be a quick and hassle-free procedure that'll see a nurse come to your home or work at a time that's convenient for you.

To sum it all up, a decreasing term life insurance policy is a great way to ensure your mortgage is covered if you're unlucky enough to die before your time. It's often the cheapest way to get cover and it'll guarantee that whoever's left behind won't lose their home on top of losing you.

To get a decreasing life insurance policy for a fantastic price, all you need to do is fill in Protected's quick-and-easy form. You'll then be able to choose from hundreds of policies to pick exactly the one that's right for you. You really will be amazed at how little a policy could cost you!

Back to Decreasing Term Life Insurance »