Good reasons to buy

Unlike some life insurance providers, we don’t need a doctor's report or need to send you off for a medical. With just a few health questions, you’ll know instantly whether you can be insured or not. So you can get on with life.

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Pay off the home

Payout reduces roughly in line with your mortgage

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Terminal Illness Cover

Included at no extra cost

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Affordable monthly payments

From just £7 a month

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How it works

You can choose cover of up to £500,000 which will reduce each year at a rate of 7%.  This policy can be used to pay off any outstanding balance on a repayment mortgage if you die during the term of the policy.

If you use this to cover a repayment mortgage, the amount of cover you have will reduce by 7% each year. Therefore, if your mortgage interest rate is higher than this, the policy may not fully repay your mortgage. 

You also need to check that the end date of your policy and mortgage, along with the cover amount and mortgage amount are the same when setting up the policy. If there are any changes, your policy may not cover your outstanding mortgage amount.

You can also use this policy to cover any other debt that reduces over time.

A decreasing term policy typically costs less than a level term policy as the amount reduces over time.  Your monthly payments to the policy will remain the same throughout the term.

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Who is Decreasing Cover Life Insurance for?

For anyone buying a property using a repayment mortgage, Decreasing Cover can be used to help cover the mortgage should the worse happen. The way it works makes it particularly suitable for protecting a repayment mortgage, or indeed any other loan that you’re repaying over time.

Another reason that you may choose this type of policy is that you think your dependents may not need such a large payout as the years go by. For example, if they are grown up and financially independent, they will not need as much of a large payment.

While the payout amount of Decreasing Cover reduces over time, the monthly payments are fixed, but normally less than level cover life insurance payments. So this type of insurance is good to consider if you are on a tight budget.

 

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Seven reasons to get Decreasing Cover

A lump sum paid out to your family when you die:

  1. Can be used to help repay your mortgage so that your family can keep their home
  2. Monthly payments typically less than Level Cover Life Insurance
  3. Fixed monthly payments that never increase
  4. Terminal Illness Cover included at no extra cost
  5. Only a few minutes to get covered with our easy online application
  6. Get cover up to £500,000, make a real difference for your family
  7. From just £7 a month - that's only 23p a day!

Important things to know

Our Life Insurance has no cash-in value – it’s a protection policy only.

If you stop making payments, your cover ends and you won’t get anything back.

You can apply if you’re a UK resident aged between 18 and 70 and not a member of the Armed Forces, Territorial Army or reservists. 

If you use this to cover a repayment mortgage, the amount of cover you have will reduce by 7% each year. Therefore, if your mortgage interest rate is higher than this, the policy may not fully repay your mortgage.

Frequently asked questions about our Decreasing Cover Life Insurance

Whatever your question, we've got you covered.

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. 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.

*This policy may not pay off the full outstanding mortgage amount. If the interest rate applied to your mortgage becomes higher than that applied to your policy (currently 7%), there may not be enough money to repay the mortgage.

 

Yes. A Decreasing Cover policy pays out on diagnosis of an illness that has no cure or cannot be cured and which is expected to lead to death within 12 months.

You can have Decreasing Cover up to £500,000 and a total of £500,000 across all life insurance policies you have with us.

You specify how long you want the cover to last for when you apply for the policy. The term can be as little as five years or as long as 50 years, but the cover must end by age 80.

You’ll need to keep making monthly payments throughout the period of cover, unless you die or a terminal illness diagnosis that meets our definition has been confirmed. You can stop making your payments at any time. If you do, your cover will end and you won't get anything back.

No. We’ll never increase your monthly payment and you can reduce your payment at any time to any amount, down to £7 a month.

If you choose to reduce your payment your cover amount will also reduce. If you have Serious Illness Benefit you may not be able to reduce your monthly payments to £7 a month. This is because the cost of Serious Illness Benefit is worked out separately, even though we take both payments at once.

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.

In the first instance, please keep your policy documents safe and let your next of kin know where to find them.

Second, your family should please call us and our trained staff will deal with the claim with kindness and sympathy.

Our UK- based call centre and dedicated claims line is 0345 266 5400.

The claims line is open: Mon to Fri: 8am–7pm. Sat: 9am–5pm. Sun: 10am–4pm.

Or they can post to:

Customer Services

PO BOX 696

Royal London House

Macclesfield

SK10 9AJ

We realise that it may be a difficult time when a claim is being made, so we’ll deal with the claim as quickly as we can. Once we’ve received all the information we need, we will make payment within 10 working days.

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. 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.

*This policy may not pay off the full outstanding mortgage amount. If the interest rate applied to your mortgage becomes higher than that applied to your policy (currently 7%), there may not be enough money to repay the mortgage.

 

Yes. A Decreasing Cover policy pays out on diagnosis of an illness that has no cure or cannot be cured and which is expected to lead to death within 12 months.

You can have Decreasing Cover up to £500,000 and a total of £500,000 across all life insurance policies you have with us.

You specify how long you want the cover to last for when you apply for the policy. The term can be as little as five years or as long as 50 years, but the cover must end by age 80.

You’ll need to keep making monthly payments throughout the period of cover, unless you die or a terminal illness diagnosis that meets our definition has been confirmed. You can stop making your payments at any time. If you do, your cover will end and you won't get anything back.

No. We’ll never increase your monthly payment and you can reduce your payment at any time to any amount, down to £7 a month.

If you choose to reduce your payment your cover amount will also reduce. If you have Serious Illness Benefit you may not be able to reduce your monthly payments to £7 a month. This is because the cost of Serious Illness Benefit is worked out separately, even though we take both payments at once.

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.

In the first instance, please keep your policy documents safe and let your next of kin know where to find them.

Second, your family should please call us and our trained staff will deal with the claim with kindness and sympathy.

Our UK- based call centre and dedicated claims line is 0345 266 5400.

The claims line is open: Mon to Fri: 8am–7pm. Sat: 9am–5pm. Sun: 10am–4pm.

Or they can post to:

Customer Services

PO BOX 696

Royal London House

Macclesfield

SK10 9AJ

We realise that it may be a difficult time when a claim is being made, so we’ll deal with the claim as quickly as we can. Once we’ve received all the information we need, we will make payment within 10 working days.

Prefer to leave your loved ones a fixed amount?

You may be interested in our Level Cover, available from just £7 a month.

Serious Illness Benefit option

For an additional monthly cost you could add this extra protection for you and your children. It gives you a financial safety net if you are diagnosed with one of the six illnesses that we define.

Useful info

Making a claim

Important Documents and Guides

Policy summary

Terms and conditions

Got a question?

Call us, we're here to help

0800 085 4201

Free from UK landlines and mobiles

Mon to Fri: 8am-7pm. Sat: 9am-5pm. Sun: 10am-4pm.