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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

Our
Review Score

9.5/10

based on 3,984 reviews

Decreasing Term Quote*

£6.98

per month

With Critical Illness Cover**

£22.34

per month

Claims Paid****

99.5%

2nd

Our
Review Score

9.4/10

based on 51,988 reviews

Decreasing Term Quote*

£8.25

per month

With Critical Illness Cover**

£24.31

per month

Claims Paid****

99%

3rd

Our
Review Score

9.0/10

based on 23,560 reviews

Decreasing Term Quote*

£7.47

per month

With Critical Illness Cover**

£17.07

per month

Claims Paid****

98.9%

4th

Our
Review Score

9.0/10

based on 10,992 reviews

Decreasing Term Quote*

£6.64

per month

With Critical Illness Cover**

£22.10

per month

Claims Paid****

99.5%

5th

Our
Review Score

8.4/10

based on 24,672 reviews

Decreasing Term Quote*

£9.18

per month

With Critical Illness Cover**

£28.32

per month

Claims Paid****

99.5%

6th

Our
Review Score

7.8/10

based on 7,971 reviews

Decreasing Term Quote*

£9.70

per month

With Critical Illness Cover**

£26.44

per month

Claims Paid****

98%

7th

Our
Review Score

7.8/10

based on 5,963 reviews

Decreasing Term Quote*

£8.52

per month

With Critical Illness Cover**

£24.94

per month

Claims Paid****

98%

8th

Our
Review Score

7.1/10

based on 1,012 reviews

Decreasing Term Quote*

£8.38

per month

With Critical Illness Cover**

£26.17

per month

Claims Paid****

99.7%

9th

Our
Review Score

6.8/10

based on 705 reviews

Decreasing Term Quote*

£7.71

per month

With Critical Illness Cover**

£18.03

per month

Claims Paid****

99%

10th

Our
Review Score

6.4/10

based on 11,362 reviews

Decreasing Term Quote*

£7.16

per month

With Critical Illness Cover**

£23.51

per month

Claims Paid****

97%

*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.

****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