Decreasing term life insurance has been available in the UK for a long time and is a cheap way to get life insurance for a certain amount of time.
People usually get decreasing term life insurance to pay off things like loans and mortgages if one of the people insured dies. Assuming that the policy has enough life insurance to pay off the loan or mortgage, the partner who stays alive won't have to keep making payments on the loan or mortgage. This will help their budget.
During the life of the policy, the amount of Decreasing Term Life Insurance coverage goes down. This is usually in line with how much the loan or mortgage goes down, so there should usually be enough life insurance coverage to pay off the debt.
Most of the time, the premium stays the same over the life of the policy, but the amount of the premium changes to reflect the fact that the amount of life insurance coverage is going down.
Most of the time, decreasing term life insurance is set up to pay out either for the life of one person or for the life of the first person to die.
If the people covered by the policy are still alive at the end of the policy term, the policy usually ends and nothing is usually paid out.
Critical illness coverage can sometimes be added to Decreasing Term Life Insurance, but it costs extra.
You should carefully read the Key Features document that your insurance company or financial advisor gives you about this type of life insurance coverage. This document will tell you everything you need to know about this type of life insurance coverage.
There are a lot of life insurance companies that offer Decreasing Term Life Insurance, and if you want advice about it, you should talk to a financial advisor.
