Decreasing term life insurance

Compare quotes for life insurance with a decreasing term that could help pay off a debt like a mortgage after you have gone.

Trustpilot

Life insurance

Sponsored by

Get quotes from these life insurance providers and more.

Aviva inline logo
HSBC logo
Legal & General logo
LV logo
Royal London logo
Scottish Widows logo
Vitality logo

What is a decreasing life insurance policy?

It is a life insurance policy that offers a reducing payout over its term. It can be used as a type of mortgage life insurance, with the payout reducing as your mortgage is repaid each month.

How does decreasing life cover work?

You choose a payout amount when you take out your policy, and the amount reduces each month until the policy ends.

This type of life insurance can be taken out to run alongside any large amounts of debt you may have, e.g. your mortgage.

What cover do you need?

Before you get quotes online, find out:

  • How much your mortgage is worth: This will give you a payout figure to use when you get quotes.

  • What interest rate you pay on your mortgage: A decreasing life policy reduces its payout based on a set monthly percentage. Look for a policy that has the same interest or higher so you have the cover you need.

What else to consider

Finding the best policy is not only about getting the cheapest price for the payout and term you want. When you get quotes, think about:

  • What causes of death you want cover for: Most insurers cover strokes and certain types of cancer, but they do not cover all causes of death. Check policy documents for a list of conditions covered, and any exclusions.

  • If you want a policy with reviewable cover: Some insurers let you review and adjust your cover after a set term, like 15 years. If you no longer need as much cover, you could end up paying less, but if your health has worsened it could cost you more.

Here is how you could cut the cost of your life insurance

Why choose decreasing term life insurance?

A decreasing term life insurance policy is usually cheaper than a level term or whole of life policy, but the payout reduces each month.

Decreasing life insurance is usually taken out alongside a mortgage. This is because the payout reduces each month, similar to your mortgage balance after repayments.

This differs to level term life insurance, which will pay out a fixed amount if you die during the term, but costs you more in monthly premiums.

Here is more on the differences between decreasing and level term cover

Decreasing term life insurance FAQs

The price is based on your age, how much cover you want, how long you want it for, and your medical history. Here is how to cut the cost of life insurance.

Only if your cause of death is covered in your policy, and you die during the term of the policy. Here is more on how life insurance works.

You may find it harder to get cover if you have any health issues. Get as many quotes as you can until you get accepted for the cover you want.

Yes, but you may find it cheaper to have one policy that gives you the exact cover you need.

Get life insurance quotes

Compare life insurance from a wide range of UK providers