Term life insurance is the most common and affordable form of life insurance protection.
Typically, it comes as either level or decreasing term and is often used to help protect your mortgage if the worst were to happen.
But which is the best term policy option for you?
The truth is, it'll all depend on your specific needs and what you want to protect.
By using an FCA regulated broker, such as Reassured, you can compare both level term and decreasing term quotes from the UK's best life insurance providers.
|Level term||Decreasing term|
|Policy will last for a specified period of time||Policy will last for a specific period of time|
|Pay out issued if you pass away during the policy term||Pay out issued if you pass away during the policy term|
|Pay out sum remains fixed throughout the lifetime of policy||Pay out sum reduces over the policy term|
|Best suited to paying off an interest-only mortgage||Best suited to paying off a repayment mortgage|
|More expensive than decreasing term||Cheaper than level term, (as less risk posed to the insurer)|
|Usually comes with terminal illness cover||Usually comes with terminal illness cover|
|Critical illness cover add on option||Critical illness cover add on option|
|Can be written in trust to avoid 40% inheritance tax||Can be written in trust to avoid 40% inheritance tax|
Read on to find out everything you need to know about level term vs decreasing term life insurance…