Level term or decreasing life insurance

Level term life insurance is where the potential payout stays the same while you're covered by the policy. Before you take out a level term policy, you can choose how much cover you need and how long you need it for, and neither will change during the policy, unless you make any changes to it.

Decreasing life insurance is sometimes referred to as ‘mortgage life insurance', as the payout is often used to help pay off a repayment mortgage. Unlike a level term life insurance policy, the amount of cover decreases roughly in line with how a repayment mortgage decreases.

Both level term life insurance and decreasing life insurance are designed to protect your loved ones financially if you pass away. The main difference is that ‘level term’ policies have a fixed payout amount for the length of the policy. The payout on a ‘decreasing’ policy reduces over the length of the policy.

Whether you choose level or decreasing life insurance, the monthly cost will remain the same for the duration of the policy, unless you make any changes. 

These products are not savings or investment products and have no cash value unless a valid claim is made.

It’s worth remembering that you may not always see these policies described as ‘level term’ or ‘decreasing term’. In fact, our level term policy is simply known as Life Insurance while our decreasing term policy is called Decreasing Life Insurance.