Compare Decreasing Term Life Insurance Quotes

What is Decreasing Term Life Insurance?

Decreasing term life insurance is intended to provide cover for a financial commitment, such as the repayment of your mortgage. If you pass away during the term of the cover, it pays a lump sum to a nominated beneficiary. The level of cover reduces steadily over the term, generally in line with your remaining mortgage balance.

Because the amount of cover reduces as the years go by, premiums tend to be lower than those for level term life insurance. This option could be an affordable method of helping to ensure that, if the worst were to happen, your mortgage could be paid off.

Considerations when looking at Decreasing Term Life Insurance

Before purchasing decreasing term life insurance, it’s worth considering the following items –

• Initial amount of cover – this is usually the same as the original mortgage balance.
• Single or joint cover – this can be helpful for couples who share a mortgage.
• How quickly the cover reduces – the cover will typically reduce in line with the speed at which your mortgage balance decreases.
• If a valid claim is made during the term of the cover, the insurer will pay out whatever level of cover remains at the time of the claim. The lump sum can help to pay off any remaining mortgage and alleviate the financial pressure on your loved ones.

Is Decreasing Term Life Insurance right for you?

This type of cover could be ideal if:

• You have a repayment mortgage, where the balance reduces each month.
• Your main focus is to help cover the cost of your home instead of leaving a fixed cash payout.
• Potential for lower monthly premiums than Level Term Insurance.

But if you have an interest-only mortgage or you would like your family to receive a fixed sum, if something were to happen during the policy term, you may wish to look at Level Term Life Insurance policies or a Family Income Benefit policy in preference.

Comparing Decreasing Term Life Insurance

It’s worth considering more than just the monthly premium when comparing policies –

• Does the policy provide terminal illness cover?
• Can you change the level of cover if your home is re-mortgaged?
• Does the policy period fit the term of your mortgage?
• Are there any exclusions or conditions that might affect a claim?

Quotezone.co.uk can help you compare multiple life insurance companies, all in one place. We work with a panel of UK insurers to help you get the right cover and find the most suitable solution for you.

Key information

Life insurance policies will have terms, conditions and exclusions so please ensure that you read your documentation carefully. If you do stop paying your premium, cover will cease. Decreasing term life cover has no cash-in value whatsoever – it’s designed solely for protection within the policy term.

Make sure that the level and term of cover you buy are appropriate to your circumstances. If you are unsure which type of policy you should choose, you may like to take advice from an independent financial adviser.

Compare Decreasing Term Life Insurance Quotes

We can help you compare competitive quotes from reputable UK insurers, making it easier to protect your home and provide for your family.

Start comparing today and find a better deal with Quotezone.