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Compare decreasing term life insurance providers

Our comparison table is ordered by review score. The review score is the average weighted score based on product quality and user reviews from the last 12 months. Find out more about how our review score is calculated here.

1st

Review Score

9.7

based on 4,334 reviews

Decreasing Term Quote*

£6.98

per month

With Critical Illness Cover**

£22.34

per month

Second Medical Opinion***

Yes

Claims Paid****

99.5%

Beagle Street offers an early payout for terminal illness and all premiums are fixed and will not change.

2nd

Review Score

9.4

based on 37,108 reviews

Decreasing Term Quote*

£8.25

per month

With Critical Illness Cover**

£24.31

per month

Second Medical Opinion***

Yes

Claims Paid****

99%

All policyholders get free access to LV= Doctor Services and terminal illness cover is included at no extra cost.

3rd

Review Score

9.2

based on 1,654 reviews

Decreasing Term Quote*

£8.38

per month

With Critical Illness Cover**

£26.17

per month

Second Medical Opinion***

Yes

Claims Paid****

99.7%

All Royal London life insurance policies include terminal illness cover at no additional cost.

4th

Review Score

8.8

based on 9,066 reviews

Decreasing Term Quote*

£6.64

per month

With Critical Illness Cover**

£22.10

per month

Second Medical Opinion***

Yes

Claims Paid****

99.5%

All Budget life insurance policies come with a free will writing service and free legal advice for end of life matters.

5th

Review Score

8.8

based on 5,331 reviews

Decreasing Term Quote*

£8.52

per month

With Critical Illness Cover**

£24.94

per month

Second Medical Opinion***

Yes

Claims Paid****

98%

All Churchill life insurance policyholders get unlimited, 24/7 access to a GP and fixed monthly payments.

6th

Review Score

8.6

based on 22,630 reviews

Decreasing Term Quote*

£9.18

per month

With Critical Illness Cover**

£28.32

per month

Second Medical Opinion***

Yes

Claims Paid****

99.5%

All customers have access to Vitality Select, which gives discounts and rewards from brands like Garmin, Nike and Virgin Active.

7th

Review Score

8.6

based on 6,881 reviews

Decreasing Term Quote*

£9.70

per month

With Critical Illness Cover**

£26.44

per month

Second Medical Opinion***

Yes

Claims Paid****

98%

Direct Line policyholder's premiums stay fixed, helping them to budget. They also have unlimited, 24/7 access to a GP.

8th

Review Score

7.9

based on 13,291 reviews

Decreasing Term Quote*

£7.47

per month

With Critical Illness Cover**

£17.07

per month

Second Medical Opinion***

Yes

Claims Paid****

98.9%

Aviva policyholders get access to MyAviva, an online area where they can view policy documents and get exclusive discounts.

9th

Review Score

7.2

based on 11,061 reviews

Decreasing Term Quote*

£7.16

per month

With Critical Illness Cover**

£23.51

per month

Second Medical Opinion***

Yes

Claims Paid****

97%

Legal & General gives you accidental death benefit while they process your application so you have some form of cover in the meantime.

10th

Review Score

5.4

based on 358 reviews

Decreasing Term Quote*

£7.71

per month

With Critical Illness Cover**

£18.03

per month

Second Medical Opinion***

No

Claims Paid****

99%

In 2019, Zurich paid out 99% of all death claims. And for every life insurance policy bought, they pledge to plant one tree with Tree-Nation.

*This is a decreasing term cover quote for £150,000 over 30 years, based on a 35-year-old non-smoking female.

**This quote also includes £37,500 critical illness cover.

***You can get a second medical opinion from a doctor or consultant in the UK to reassure you that your proposed treatment is appropriate after your initial diagnosis.

****This is the percentage of claims paid out in the last 2 years.

How does decreasing term life insurance work?

Decreasing term life insurance is taken out for a fixed number of years that normally matches the length of the loan, for example, if you’ve calculated that it will take you 10 years to pay off your mortgage, you can take out a policy with a term of 10 years. As you reach the end of your term, the amount the insurer is willing to pay out reduces. If your policy is still in place in the event of your death, decreasing term life insurance pays out a single lump sum to your loved ones.

Should I get level term or decreasing life insurance?

Level term life insurance and decreasing life cover are the two main types of life insurance policies. The type of policy that you should take out depends entirely on your personal circumstances. With level term life insurance, you choose how long you want the cover to last and how much you want it to pay out. If you pass away during the policy term, your loved ones will receive the full amount. This option could suit you if you want to make sure your loved ones are financially secure in the event of your death.
 
When it comes to decreasing life assurance, the amount your loved ones will receive in the event of your death decreases over time. It usually holds the same value as a loan and you can set the term of your policy. Decreasing term insurance is sometimes called mortgage decreasing life insurance as it’s designed to decrease in line with your mortgage. This option is best suited to you if you want help make sure a large debt is paid off when you die.

 

What are the pros and cons of decreasing term life insurance?

Pros

  • Monthly premiums are typically lower than other life insurance policies
  • Premiums remain the same throughout the duration of the policy term

Cons

  • Typically, you only cover yourself for the cost of your loans so there won’t be much or any money left once your loans have been paid off
  • If your benefit decreases at a faster rate than the interest rate of your mortgage, you could be left with a shortfall at claim
  • Decreasing term life insurance doesn’t work for you if you have an interest only mortgage