About life insurance
- What is life insurance?
- Why do I need life insurance?
- What is level term life insurance?
- What is decreasing term life insurance?
- What is terminal illness cover?
- What is critical illness cover?
- What is serious illness cover?
- What are guaranteed premiums?
Choosing your life insurance
- How much life insurance do I need?
- How long should I take life insurance for?
- Which life insurance provider should I choose?
- What are the next steps?
Life insurance extras
- What does putting a policy in trust mean?
- I have life insurance through my employer - is that enough?
- Can life cover be increased at a later date?
What is decreasing term life insurance?
Decreasing term life insurance is designed specifically for a personal loan or a repayment mortgage. The sum insured decreases by a pre-set percentage in line with a repayment mortgage. The sum assured will still continue to decrease if the mortgage repayments are missed.
How decreasing term life insurance works
With decreasing term life insurance you can choose the rate that your cover amount decreases at to ensure your policy will always pay out enough to pay off your mortgage or any other debts you may have.
Your mortgage rate will need to be lower than the rate at which your decreasing term cover drops.
Buying decreasing term cover
When you are buying a decreasing term life insurance policy it is very important that the amount you are insured for and the term of your policy are the same as your mortgage, otherwise your family may not receive a large enough pay-out from the insurer to pay your remaining debts off.
Still not sure?
You can ask one of our life insurance experts a question directly - we'll try to answer it as quickly as we can, and if it's a really good one, we may even feature it on our website!
Got another question? Ask a life insurance expert!
If you can't find what you're looking for on our site you can ask us a question here or talk to us over the phone by calling 0800 524 4153 and we'll be happy to answer all your questions on life insurance.