Level term
The same payout, whenever you claim during the term.
Suits: Families, and interest-only mortgages
Cover that shrinks with the mortgage
Decreasing term life insurance
As you pay the mortgage down, the payout comes down with it. You’re not paying to cover money you no longer owe.
A few minutes online. No sales calls, and no fee from us.
Other kinds of life insurance.
Decreasing term is built around a mortgage. If you’re protecting more than that, look at these.
Joint life
One policy for two people, paying out once.
Suits: Couples sharing a mortgage or bills
Family income benefit
A monthly income until the end of the term, not a lump sum.
Suits: Young families on a budget
Whole of life
Cover for the rest of your life, so it always pays out.
Suits: Leaving an inheritance, or paying Inheritance Tax
Over 50s
A fixed payout, guaranteed acceptance and no health questions.
Suits: Funeral costs, from 50 to 80
Life insurance for smokers
The same cover, priced for nicotine. Honesty keeps it paying.
Suits: Smokers, vapers and nicotine users
Why choose decreasing term?
It follows the mortgage. The payout falls roughly in line with a repayment mortgage, so the house can be paid off.
It usually costs less. Less cover later in the term means a lower premium than level cover for the same start.
One job, done well. Your family keeps the home, whatever else happens.
We compare it for you. Quotes from a panel of UK insurers, side by side, with no fee from us.
Cover from names you know.
Compare a panel of recognised UK insurers through one clear, straightforward application.
What’s covered, and what isn’t.
The short version. Your policy documents have every detail, and we’ll go through them with you.
Usually covered
- Death from illness or an accident during the term
- A terminal illness, if you’re expected to live less than 12 months
- Anywhere in the world, on most policies
Usually not covered
- Death after the policy ends
- Suicide in the first 12 months
- Anything you didn’t tell the insurer when you applied
- Any gap if your mortgage falls more slowly than the cover
The payout falls on a schedule set at the start, using an assumed interest rate. If your mortgage rate is higher, or you take a payment holiday or borrow more, the cover may not clear it all.
How it works.
Three steps, online, with a person on the phone if you want one.
- Step 1
Match it to the mortgage.
Tell us what you owe and how many years are left. Your mortgage statement has both.
Step 2Compare your quotes.
See the prices from a panel of UK insurers side by side, and choose the one that fits.
Step 3Apply, and you’re covered.
The insurer checks your answers, sometimes with your doctor. Cover starts the day they accept you.
Decreasing term questions.
Short answers to what people ask most, before they buy.
Does the premium go down as the cover does?
No. The premium usually stays the same for the whole term. It’s lower than level cover from the start because the insurer is paying less, on average, over the term.
Does it work with an interest-only mortgage?
Not well. With interest-only, the full loan is still owed at the end, so level term is usually the better fit.
What if I remortgage or move house?
Your policy isn’t tied to the mortgage, so it carries on. If you borrow more or extend the term, check the cover still matches, and top it up if it doesn’t.
Does the money go to the lender?
Not automatically. It goes to your estate, or to the people named in a trust, who can then pay off the mortgage.
Is it enough on its own?
It clears the mortgage, but not the everyday bills. Many families add level term or family income benefit to cover living costs too.
We’re a couple. Do we need two policies?
You can have one joint policy that pays out once, or two single policies that could each pay out. Two usually cost a little more.
Already have a policy?
Claims and changes are handled by your insurer: their number is on your policy documents. If you arranged it through us, call us on 01302 590 852 and we’ll help you find the policy and the right people.
For a claim, it helps to have:
- The policy number
- A death certificate, or the doctor’s report for a terminal illness
- The details of the executor or the trustees
- The mortgage account details
- Bank details for the payment
Claim through the insurer
Their claims number and online form are in the policy documents. Most claims start with one call, and they’ll guide you from there.
Ask us to help
Can’t find the policy, or the insurer? Call us on 01302 590 852 and we’ll find it with you.
Useful information
Changing your mind
You have 30 days after your policy starts to cancel for a full refund of anything you’ve paid.
If an insurer fails
Life insurance is protected by the Financial Services Compensation Scheme (FSCS), which covers 100% of a claim if an insurer can’t pay. See fscs.org.uk.
More on mortgage cover
Life insurance is one part of protecting the home. See mortgage protection for the rest.
Still need support?
Not sure your cover matches your mortgage? Ask a real person, with no sales pitch and no fee from us.
Monday–Thursday 9am–7pm, Friday 9am–3pm
