Decreasing term life insurance is a type of life insurance policy that pays out less over time. It’s often used to cover the balance of a repayment mortgage, because the total balance of the mortgage decreases over time and will be paid off in full at the end of the term.

Often, a mortgage lender will insist that you have life insurance with your mortgage.

• Cheaper to buy: Monthly premiums are often lower than with other types of life cover. That’s because the amount of money an insurance provider needs to cover you for, reduces over the course of a policy.
• Protect your mortgage: Decreasing term life insurance is popular with people who have a repayment mortgage. The amount paid out should decrease broadly in line with your mortgage. This should be enough for the people you most care about to remain in the family home if you die.
• Protect your family: If you have children, the amount of money you’d need them to receive, if you or your partner died unexpectedly, might reduce as they grow up and become more self-sufficient.