What is Decreasing Life Insurance?
Our Decreasing Life Insurance is a type of insurance that's designed to help protect a repayment mortgage and is a common consideration when buying a home. Mortgage life insurance could pay out a cash sum if you were to pass away while covered by the policy or if you were diagnosed with a terminal illness provided life expectancy is less than 12 months. With this type of insurance, the amount of cover reduces roughly in line with the way a repayment mortgage decreases.
With the rising costs of living, many of us are finding we have less disposable income so having cover in place could mean your loved ones get to stay in their family home without the worry of mortgage payments after you're gone.
How does Decreasing Life Insurance work?
You choose the amount of cover you need and how long you need it for. If you’re using Decreasing Life Insurance to help protect a repayment mortgage, it’s important to make sure that the amount of cover matches your outstanding mortgage. You can take out a policy in joint or single names.
Here are some great reasons to choose us:
This page was last reviewed by our team of financial protection experts on 30 August 2023.
Life Insurance cover details
Please read the key documents before you apply:
Things you need to know
Decreasing life insurance explained
Do I need decreasing life insurance?
If you own a property, a mortgage is likely to be the biggest debt you leave behind should the worst happen, so having a policy in place can help give you and your loved ones peace of mind.
Decreasing Life insurance FAQs
You must be a UK resident and 18 years of age at the time of applying and the policy must not end before your 29th birthday. The maximum age for buying a Decreasing Life Insurance policy is 74, and your policy must end before age 90. The minimum length of the policy is 5 years, and the maximum length is 50 years.
Please read our Policy Summary PDF for more details.
We recognise that sometimes your protection needs change, so you can request any of the following changes to the policy:
We also offer 'Joint life policy separation'. This allows a joint policy to be split into two new single policies if a couple divorce, dissolve their registered civil partnership or change a joint mortgage into one name or take out a new mortgage in one name. Your request must be made within 6 months of the event being finalised.
These changes could affect the premiums that you pay and we would have to assess any change based on your circumstances at the time.
Terms and conditions apply. Please read the Policy Booklet PDF for full details.
You can add Critical Illness Cover for an extra cost when taking out Life Insurance or Decreasing Life Insurance. It could pay out a cash sum if you’re diagnosed with or undergo a medical procedure for one of the specified critical illnesses that we cover, and you survive for 14 days from diagnosis. We cover many types of cancer, heart attack and stroke. However, some types of cancer are not included and to make a claim for some illnesses, you need to have permanent symptoms.
Please remember that these policies are not savings or investment products and have no cash value unless a valid claim is made.
If you buy Life Insurance or Decreasing Life Insurance with or without Critical Illness Cover directly from Legal & General, you could be eligible for a free gift card six months after your policy start date provided you haven’t cancelled your policy and your payments are fully up to date. If you have previously held and cancelled a Legal & General life insurance policy, with or without Critical Illness Cover within the last 18 months, you will not be eligible for this offer.
This offer is only available if you apply directly to Legal & General. If you apply through a Financial Adviser, or any website other than Legal & General’s, such as a comparison site, you will not be eligible for the free gift.
Yes, you can cancel your life insurance policy at any time. After applying for cover you'll have 30 days to contact us to change your mind if you decide not to continue with the policy. You can also do this if you register and login into My Account, however this must be done within the first 30 days of your policy starting.
If you cancel within 30 days we will return any premiums paid. If you cancel after 30 days you won't get anything back.
If you’d like to discuss your cancellation, you can speak to a member of our team on 0333 242 7101. You can write to us at: Cancellations Department, Legal & General Assurance Society Limited, City Park, The Droveway, Hove, East Sussex BN3 7PY.
When you applied for protection, you told us how long you needed cover to last. Your policy will remain live for this length of time as long as your premiums are up to date.
You could also check your bank statements for payments to other insurance companies.
Even though your policy may have been set up at the same time as you took out a mortgage, or made another financial commitment, they are separate products.
Your policy would pay out in the event of a valid claim during your policy term, whether or not you still have that mortgage or financial commitment in place.
It is at the discretion of your beneficiaries how they choose to use the proceeds in the event of a valid claim.
Are you eligible for decreasing life insurance?
Most people who apply are able to get cover for their needs, just make sure you answer all the questions truthfully when you apply. You are eligible to apply if you are:
- at least 18 years of age
- currently living in the UK and have spent at least 183 days in the UK in the last tax year.
Why choose Legal & General
The UK's No.1 Life Insurance Provider
*Based on new individual Life Insurance sales in 2022, Term & Health Watch report 2023, Swiss Re.
Award winning cover
**We've been crowned 'Life Insurance Provider of the Year (Direct)' for the 4th time at the 2023 awards.
5 Star Defaqto rated cover, the highest rating possible!
What is Wellbeing Support?
We know that the pressures of everyday life can sometimes be stressful, and can impact your wellbeing in lots of ways. That's why we've introduced Wellbeing Support Service. So whether you need a reassuring chat, some information, or help getting through a challenging time – to name just a few, they are here to help.
Take a look at our dedicated Wellbeing Support hub and find out more.
If you think that you or someone you know might need care, it can be difficult to know where to start looking or what your options are. Care Concierge is a confidential telephone advisory service that can help you understand and find later life care. Our Care Concierge team have extensive knowledge of the care industry and are completely impartial, allowing you to make an informed decision on the care option that is right for you.
Take a look at our dedicated Care Concierge page to find out more
Related information and products
Critical Illness Cover
Get extra protection with Critical Illness Cover which can be added for an extra cost when you take out your life insurance policy.
Life Insurance additional benefits
When you take out our Life Insurance we include a number of additional benefits at no extra cost, such as Free Life Cover and Terminal Illness Cover (where life expectancy is less than 12 months), giving you extra peace of mind. Terms and conditions apply.
If you're looking for life cover that doesn't decrease over time to help protect your family or mortgage, take a look at our Life Insurance where the amount of cover stays the same throughout the length of the policy.
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