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Level-Term Life Insurance v.s Decreasing-Term Life Insurance.


When it comes to life insurance there are a lot of terms that get thrown around which can become very over-whelming and one of the biggest reasons a lot of people are put off the topic of conversation or looking into it all together.

Well, there is no longer need to worry because here at Your Choice Cover we will breakdown the differences between all these terms so you can sign yourself up for the insurance that best suits your needs with your head held high and full of confidence.

"Buying life insurance is like fixing a leak in your roof, the longer you leave it, the more expensive it gets."


When it comes to the definition of each life insurance imagine there is a line graph with a big arrow across it and adjust it accordingly to the title. For example Level-term means its flat across the chart. Decreasing means the arrow points down and vice-versa. Now imagine the line is the value of money.

Level-Term Life Insurance

Level term life insurance pays out a set amount if you pass away during the term of the policy. For example, when you are insured for £100,000 over 25 years, you would receive that amount were you to pass away at any time during the duration of the policy.

There are many benefits with going with a level-term life insurance policy, the biggest is making sure your family will be financially stable. Your payout could cover household bills, mortgage payments, pay-off any outstanding debts, funeral costs, the list is endless. Your family can continue to live without having to worry with every day living cost minus your annual income.

Most insurance providers also offer benefits by going with them. For example, 2nd medical opinions, 24/7 online GP, discounts, kids cover, just to list a few. It is worth looking further into this and make sure you are getting the best deal and benefits for you and your family and dont sign up for the first eligible insurance provider.

There are a few drawbacks when it comes to level-term life insurance, one being that it wont increase with inflation so with the rise of the cost of living the amount of cover you choose remains the same. There are other criteria's that will effect the amount of your monthly premium and can be discussed with our friendly advisor team on 0333 188 7617 and we can help you through every step of the way.

Decreasing-term life insurance or mortgage protection insurance.

Decreasing-term life insurance or mortgage protection insurance is cover designed to cover your monthly mortgage costs that will decrease over time in line with your mortgage amount.

For example, at the start of the policy the benefit may be £250,000, the same value as your mortgage. After 10 years of repayments, the benefit may be £150,000, matching the amount you have left to pay on your mortgage. For many families throughout the UK, mortgage repayments are their largest and most important monthly outgoing. Similarly, 1.4m households in the UK struggle to make that payment every month. So, you have to ask yourself the question...If the worst case scenario were to happen to you would your family be able to remain in the family home?

For a lot of mortgage lenders one of the pre-conditions to signing for your mortgage loan is you need to be set up with some form of life insurance before they will issue you any money. This ensures they will be paid back regardless of the circumstances.

When it comes to which life insurance policy is best for you, this is down to each individual circumstances, but dont worry. Our amazing advisors are always on hand to answer any questions you may have and again can be reached on 0333 188 7617.

For more information like this make sure you read our other article here. Also, Follow us across our multiple social media channels so you never miss out on financial service information that could protect you and your family.

Your Choice Cover

12 Celtic Trade Park, Bruce Road Fforestfach, Swansea, SA5 4EP

Phone: 0333 772 1284

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