Decreasing Term Life Insurance

Decreasing term life insurance is a form of term assurance. Decreasing term insurance pays out a cash lump sum to your family upon death however the cover is designed to reduce over the term of the policy, tending to align with an outstanding loan such as a repayment mortgage. Although the decreasing term life cover reduces over time the monthly premiums remain fixed.

Peace of mind knowing your loved ones are protected should the worst happen.

Tailor your cover to either remain fixed or decrease over time depending on your needs.

Include critical illness cover protecting you should you suffer a serious illnesses.

Provides a lump sum cash payment on death.

A simple and inexpensive product.

Type of cover - Level Term Assurance Level Term Assurance and Critical Illness Cover Decreasing Term Assurance Decreasing Term Assurance and Critical Illness Cover Level of cover £ Length of cover . years

What can decreasing term life insurance be used for?

The decreasing term life cover sum paid to your loved ones can be used to replace lost income, covering an outstanding financial obligation such as a repayment mortgage. The sum paid out by the decreasing term life insurance will depend on the amount of cover you wish to take out at the start of the decreasing term life policy and the length of time to the end of the plan .

Do I need decreasing term life insurance?

What would be the financial impact on your family if you were to pass away? Would your partner have enough earnings and savings to make outstanding loan repayments? If not, then decreasing term life insurance could be a sure way to protect their future.

	Decreasing term insurance has lower premiums than level term insurance.
	Decreasing term life insurance is designed to leave a tax-free cash lump sum to those left behind to pay off mortgage or loan.
	Decreasing term assurance is limited to paying out on death only (additional option to include a critical illness policy)
	Decreasing term cover has no maturity value if you survive beyond the policy term.

Factors to consider when buying decreasing term life insurance?

• What tax-free sum would your family require from the decreasing term life policy should the worst happen?
• How long do think you will need the decreasing term life insurance policy to last?
• Would you like the life cover premiums to be fixed over the term of the policy?
• Have you considered including a critical illness policy with your decreasing term life insurance. Providing financial protection if you were diagnosed with a critical illness.

If you need any life insurance advice or term insurance quotes then please don’t hesitate to get in touch, as insurance brokers we deal in insurance day in, day out, thus are in a great position to help.

For more more information on the regulation of life insurance see the Financial Services Authority website

This entry is filed under Life Insurance Information.