Life Insurance - Decreasing Term Cover
Help your loved ones pay off your repayment mortgage when you pass away
Our Decreasing Cover could help your family clear the debt on your family home if you die while covered by our Life Insurance.
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A lump sum up to £750,000 depending on your age when you take out the plan. The payout reduces roughly in line with a mortgage that has an interest rate of 7%
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Fixed monthly payments that never increase
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Typically costs less than Level Cover Life Insurance
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Affordable monthly payments from just £7 a month - that's only 23p a day
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You can choose for the policy to last for between 5 and 50 years
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No medical – get an instant decision
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Terminal Illness Cover included at no extra cost
Important things to know
- You can apply if you’re a UK resident aged between 18 and 70
- The plan must end when you reach age 80
- If you use this to cover a repayment mortgage, the amount of cover you have reduces over time, roughly in line with a debt that has an interest rate of 7%. Therefore, if your mortgage interest rate is higher than this, the policy may not fully repay your mortgage.
- Our Life Insurance has no cash-in value – it’s a protection policy only
- If you stop paying for your plan, your cover ends and you won’t get anything back
Difference between decreasing term and level term
Decreasing Cover pays out a single amount that reduces over the term of the policy. Although payments stay the same over the term of the policy, how much you pay each month is typically less than for level term life insurance. You could use it to help cover a repayment mortgage or any other loan that gradually gets repaid.
Level cover is life insurance where the payout amount stays the same over the term of the policy. The monthly payments also stay the same over the term of the policy.
When a claim is paid, your family will get the amount of money you took the policy out for.
How to claim
We make things as clear and easy as possible and give you a dedicated claims specialist.
You’ll need a few documents before you get in touch with us and we have helpful information to make the process easier. Learn about starting the claims process.
99.5%
of claims paid in 2021
Royal London Protection business claims paid (1 January to 31 December 2021)
Why choose Royal London?
We're a mutual
We're a mutual, so we're not answerable to shareholders. We can make our decisions in the best interests of you, our customers.
Immediate decision
Unlike some life insurance providers, we don’t need a doctor’s report or need to send you off for a medical. We can give you a decision straight away.
Our awards
Whether it's for our outstanding products or first-class service, we're delighted to have received several awards over the years.
Frequently Asked Questions
Our Decreasing Cover pays out a single amount that reduces over the term of the policy. Although payments stay the same over the term of the policy, how much you pay each month is typically less than for level term life insurance. Our decreasing cover falls roughly in line with the reducing balance on a repayment mortgage*. So you can use it to cover a repayment mortgage or any other loan that gradually gets repaid.
*This policy may not pay off the full outstanding mortgage amount. The amount of cover you have reduces over time, roughly in line with a debt that has an interest rate of 7%. Therefore, if your mortgage interest rate is higher than this, the policy may not fully repay your mortgage.
You're still covered if you miss your payments within a 60-day period. If you do not pay your outstanding payments within that period, you will no longer be covered and we'll have to cancel your policy on the 61st day.
It is worth remembering that you won’t get any money back, as this is a life insurance policy and not a savings plan. So you can’t cash in your cover at any time.
We make things as clear and easy as possible and give you a dedicated claims specialist. You or your family won’t have a long, difficult process with us. Once the claim has been processed, the money will be sent to your family as quickly as possible. Make a claim
When you've been around for as long as we have, you know that life is full of changes. If you need to update details such as your name, address or bank details, we can help you make the changes you want. Update my policy
To put it simply, Level cover is life insurance where both the monthly payments and the payout amount stay the same over the length of your policy. If you die within the term, your family will be given the pre-agreed sum.
For decreasing cover, the payout sum shrinks throughout the length of your policy. Your monthly payments stay the same but how much you pay each month is usually less than Level cover. You could use it to help cover a mortgage or any other loan that gradually gets repaid.
We offer single life policies, which means you both have your own policy. With joint polices if one partner dies the whole policy may end and the other partner will not have any cover.
Our Decreasing Cover pays out a single amount that reduces over the term of the policy. Although payments stay the same over the term of the policy, how much you pay each month is typically less than for level term life insurance. Our decreasing cover falls roughly in line with the reducing balance on a repayment mortgage*. So you can use it to cover a repayment mortgage or any other loan that gradually gets repaid.
*This policy may not pay off the full outstanding mortgage amount. The amount of cover you have reduces over time, roughly in line with a debt that has an interest rate of 7%. Therefore, if your mortgage interest rate is higher than this, the policy may not fully repay your mortgage.
You're still covered if you miss your payments within a 60-day period. If you do not pay your outstanding payments within that period, you will no longer be covered and we'll have to cancel your policy on the 61st day.
It is worth remembering that you won’t get any money back, as this is a life insurance policy and not a savings plan. So you can’t cash in your cover at any time.
We make things as clear and easy as possible and give you a dedicated claims specialist. You or your family won’t have a long, difficult process with us. Once the claim has been processed, the money will be sent to your family as quickly as possible. Make a claim
When you've been around for as long as we have, you know that life is full of changes. If you need to update details such as your name, address or bank details, we can help you make the changes you want. Update my policy
To put it simply, Level cover is life insurance where both the monthly payments and the payout amount stay the same over the length of your policy. If you die within the term, your family will be given the pre-agreed sum.
For decreasing cover, the payout sum shrinks throughout the length of your policy. Your monthly payments stay the same but how much you pay each month is usually less than Level cover. You could use it to help cover a mortgage or any other loan that gradually gets repaid.
We offer single life policies, which means you both have your own policy. With joint polices if one partner dies the whole policy may end and the other partner will not have any cover.
Got a question?
Call us, we're here to help
0800 085 4201
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