What is Decreasing Life Insurance?

When buying a home, it's not uncommon to consider mortgage life insurance. Our Decreasing Life Insurance is a type of insurance that's designed to help protect a repayment mortgage. It could pay out a cash sum if you die or you're diagnosed with a terminal illness with a life expectancy of less than 12 months, during the length of your policy. With this type of insurance, the amount of cover reduces roughly in line with the way a repayment mortgage decreases.

How does Decreasing Life Insurance work?

With our Decreasing Life Insurance, a cash sum could be paid out if you die or are diagnosed with a terminal illness with a life expectancy of less than 12 months, while you're covered by the policy. The cash sum could be used by your loved ones to help pay off an outstanding mortgage.

You can 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 have the option to take out a policy in joint or single names and you can pay your premiums monthly or annually.

  • Premiums start from only £6 a month depending on your needs and circumstances
  • You have the option to add Critical Illness Cover for an additional cost
  • Additional benefits are included at no extra cost when you take out this policy

Do I need Decreasing Life Insurance?

As with any insurance policy, whether you need Decreasing Life Insurance will depend on your circumstances. Our Decreasing Life Insurance is designed to meet the demands and needs of people who want to help protect a repayment mortgage.

So if you’re looking for a policy that could help protect a repayment mortgage and give you piece of mind that your family can continue living in your home if something happens to you, this could be a suitable option. Our life cover calculator may be useful if you’re not sure if this is the right cover for you, or you could speak to your financial adviser.