Pay off the home
Choose a payout to match your mortgage
Terminal illness cover
Included at no extra cost
Lower monthly payments
Decreasing payout means less costs
Keeping a roof over their heads
For many, losing their home after the death of a breadwinner is a very real possibility. With our Decreasing Term Life Insurance in place, the amount its pays out can help your family pay off the mortgage – protecting them from the anxiety and disruption of losing the family home.
7 reasons to get Decreasing Term Life Insurance cover
- Don't lose the family home with a payout that covers the mortgage
- Designed to protect a mortgage
- Pay less than Level Term Life Insurance
- 5 star Defaqto rating for cover, features and benefits
- Fixed monthly payments that never increase
- Buying a home? Protect the biggest purchase of your life
- From just 17p a day to protect your family!
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Looking to cover an interest only mortgage? If you have children or dependents, our Level Cover can help protect their future.
Answers to your questions
What is Decreasing Cover?
Our Decreasing Cover pays out a single amount that reduces over the term of the policy. So how much you pay each month is typically less than for level term life insurance. Payments stay the same over the term of the policy. Its 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.
How does it work?
With Decreasing Cover you choose an amount and a policy term that matches that of your mortgage or loan, so your insurance matches your loan commitment.
Each month your cover decreases, roughly in line with the debt you're repaying. As both come to an end at the same time, your decreasing cover will reach zero by the end of the term. You're covered only for as long as the policy runs – once the term ends, the cover ends.
If a claim is made during the policy term, any outstanding repayments on your mortgage or loan should be covered.
Why choose Decreasing Cover?
Decreasing Cover is designed to help protect your loved ones if you have a repayment mortgage or any other financial commitment that you are steadily paying off. The amount of cover reduces over time, so typically, decreasing term life insurance is cheaper than level term life insurance.
How much can it pay out?
Decreasing Cover can pay out up to £350,000 as a single payment. As the cover decreases, the payout amount will reduce to zero by the end of the term.
What amount is right for me?
If you have a repayment mortgage, Decreasing Cover is designed to pay it off. So you can take out a policy that matches the amount and term of your mortgage. Or you may have another financial commitment you are paying off steadily that you can cover.
Will I need to provide medical information?
Yes, when you apply you'll need to answer a few simple health questions. You need to answer these questions accurately and honestly. Depending on your answers you could be covered in a few minutes.
Important things to know
We won’t pay a claim on death if it was as a result of suicide or intentional self-inflicted injury within 12 months of the start date of your policy.
We won’t pay a claim on terminal illness if you don’t meet our definition of terminal illness; or terminal illness is caused by intentional self-inflicted injury within 12 months of the start date of your policy.
We won’t pay a claim if you don’t keep your payments up to date as you will no longer be covered under the policy. Or if you don’t tell us something or give us incorrect details which would have affected your cover. If you’re a UK resident aged between 18 and 70, excluding members of the Armed Forces, you can apply.
The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London EC3V 0RL.