What is decreasing term life insurance

Decreasing term life insurance is a term life policy with a death benefit that gets smaller over time. It's beneficial if you expect your loved ones to gradually need less financial support as time passes.

What is decrease term insurance?

Decreasing term insurance is a type of renewable term life insurance with coverage decreasing over the life of the policy at a predetermined rate.

What happens at the end of a decreasing life insurance policy?

The amount the life insurance policy pays out falls as the insurance term progresses, on a monthly or yearly basis. It will be down to zero by the end of the term. That means if you were to die near the beginning of the term, your loved ones would receive more money than if you died nearer to the end of the term.

Is it better to get level or decreasing life insurance?

Due to the large pay out potential, level term life insurance is often best suited to protecting a repayment mortgage. Whereas a decreasing term life insurance is ideal for protecting a repayment mortgage as the sum assured can reduce in line with your remaining mortgage balance.