19 Dec 2018
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Decreasing Life Insurance

What is a Decreasing Term Life Insurance Policy ?

Decreasing term life insurance is a policy where the amount of life cover you have (the sum assured) goes down over the term of the policy. It is designed to cover a capital & repayment mortgage. As the amount you owe on your mortgage goes down, so does the cover to match.

It will pay a lump-sum to clear the mortgage should you die within the term of the policy.

Things to Know About Decreasing Term Life Assurance

Most insurers will attach an 8% interest rate to your decreasing assurance policy. This means that as long as your mortgage interest rate doesn't go above this, there will always be enough to pay off your mortgage. This interest rate can vary between providers, although some insurers will offer a ‘Mortgage Guarantee’ so you know your mortgage is covered, regardless of interest rates.

If you make changes to your mortgage, such as borrowing more or paying back extra, you will need to change your cover as well, as it won’t change automatically.

Your monthly premium DOES NOT decrease, it will remain the same throughout.

Are There any Options I can have ?

Decreasing Term Life Insurance Quotes & Advice

You can obtain instant decreasing life insurance quotes with our online quotation system today. With our discounted premiums you can get a great deal for you term assurance.

If you would like to find out more about decreasing term life insurance our professional advisors can advise you on all the different term life insurance options. Simply complete our life insurance advice form and advisor will call you to discuss you life assurance needs.