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Decreasing term / mortgage protection
Decreasing term life insurance is designed to pay off a debt that reduces over time, such as a repayment mortgage. The payout falls during the term, so it is usually cheaper than level term cover.
What it covers
- Outstanding balance on a repayment mortgage
- Other debts that reduce over time, such as loans
- A smaller lump sum for your family as the policy matures
Who it's for
- Homeowners with a repayment mortgage
- People who want affordable cover that tracks a shrinking debt
- Families whose main concern is keeping the family home
Pros
- Usually cheaper than level term insurance
- Payout tracks a reducing debt
- Helps protect the family home
Considerations
- Payout reduces over time, so it is not ideal for general family protection
- No surplus cash for other living costs
- No payout if you outlive the term
Ready to protect your nest egg?
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