Life insurance can help to make a difficult time easier for your family. Here's how to get the best life insurance policy for the lowest price.
Ensuring that you leave a lump sum to help your spouse and dependents meet their financial commitments is important and so arranging adequate life cover should be top of your financial agenda.
There are different types of life cover available on the market. Decreasing life cover can be a cheap and effective way to help meet some of your life insurance needs.
What is decreasing term life assurance and why would you buy it?
As the name suggests, the cover on a decreasing life cover policy reduces over the term of the policy. If you die in the first few years of the policy it will pay out more than if you die in the later years.
Decreasing term life assurance is sometimes called ‘mortgage term assurance’. This is because these policies are often used to cover a repayment mortgage. As your mortgage balance reduces, the decreasing life cover reduces roughly in line with your mortgage to ensure that any balance is repaid in the event of your death.
What to look for when searching for the best decreasing term life insurance quote
When you compare decreasing term life insurance there are a number of factors that you should take into account.
Most importantly, is decreasing life assurance the right product for you?
It is useful for protecting a capital and interest/repayment mortgage but is unlikely to be suitable if your mortgage is on an ‘interest only’ basis. It is also unlikely to be suitable for providing protection to your family if you require a fixed level of life cover.
You should also research the terms and conditions of policies before you buy. For example, is there any maximum term on the policy, or any maximum age limit?
The best decreasing term life insurance quote is likely to be the one that offers the cheapest premium for the cover you need.
For this reason it's paramount you compare decreasing term life insurance quotes before you settle on a policy. Some insurers will also offer a discount if you buy your life cover online while others offer a range of special offers such as vouchers or loyalty points.
Be careful not to be swayed by special offers. While a few vouchers may seem appealing, you are likely to be paying your decreasing life assurance premium for decades and so a cheaper premium is likely to save you more over the term of the policy.