Most of us take life insurance at some point to protect our loved ones in the event of our death. Unfortunately, when we die our debts remain and in addition to the distress of bereavement a grieving family might easily be saddled with money-worries too.
In most cases a mortgage lender will insist of life cover to cover the debt secured on the property. In addition, you might decide that you want to leave a lump sum to cover for expenses in the immediate months or years after your death.
Of course, as life moves on you might find that your mortgage sum is reducing or your liabilities have decreased. Perhaps you have built up savings and reduced debt, thus making the need for insurance redundant? Therefore, rather than insuring for a fixed lump sum throughout the term of your cover, some people agree a reducing insured sum, either linked to the mortgage sum outstanding or perhaps linked to family events such as the graduation of your children or the repayment of outstanding loans.
A Level Term policy is a fixed sum throughout the term. A Decreasing Term is, as the name suggests, allows for a varying sum insured to take account for events such as the ones mentioned above.
The advantage to a decreasing Term Insurance is primarily reduced premiums. The insurer’s exposure to risk is reduced and this is reflected in the premiums you must pay.
Of course, when considering life insurance, it is also worth considering terminal critical illness cover and family income benefits insurance. You should also review what other cover might be in place already including death-in-service insurance provided as a perk by some employers.
At Mortgage Required we believe that protecting your property, possessions and loved ones is essential. Having the correct cover in place gives both peace of mind and security should the worst happen. Find out more about our protection services here.
Contact Mortgage Required to speak to an protection adviser on 01628 507477.
Related articles:
Download our Free First Time Buyers Guide
Recent posts
Buy to Let mortgages: what's happening?
Yesterday
We look at how to get the best Buy to Let mortgage rate, what's in store going forward, and options as a landlord with increasing costs.
UK mortgage rates following Trump’s Tariffs
10 days ago
Throughout this past week, lenders have continued to reduce their mortgage rates giving borrowers in the UK some welcome news following the change in global tariffs under US President, Donald Trump.
Effective ways to relieve stress
10 days ago
Did you know that buying a house, or relocating is in the top 10 most stressful life events?
Stress of course is an unavoidable part of life and there are many reasons why people experience stress, not just buying a house!
There are lots of effective ways to manage and reduce stress, check out our tips to help you.
The most inexpensive areas for first time buyers
23 days ago
With the stamp duty relief ending in England and Northern Ireland, we have listed the top 10 cheapest areas for first-time buyers as published by Rightmove.
Tips to help you get onto the property ladder
23 days ago
Are you looking to purchase your first home but unsure where to begin? Here are some tips to get you started.
Choosing which fixed rate to go for has been a dilemma for many of our clients so far this year. There really isn’t a right or wrong answer, but below we will look into the pros and cons of a two-year and five-year to help you make the right decision for you.
Best UK Mortgage Rates this Week
18 Mar 2025
Here are the lowest fixed mortgage rates of the week, available to first-time buyers, home movers, buy-to-let, and those remortgaging.
Call us for more information: 01628 507477 or email: team@mortgagerequired.com.
Stamp Duty Rush as Deadline Looms
17 Mar 2025
According to Rightmove, a whopping 500,000 UK homebuyers are rushing to finalise their home purchase before the new Stamp Duty rules change in April.
More information
Trusted by
