Yes, it’s possible to buy decreasing term life insurance online through Mortgage Generator.

If you know that decreasing term life insurance is the right option for you, it’s now possible to be covered in a matter of minutes via our online journey.

Not only does buying online give you more control over the application process, but you have the freedom to purchase a policy whenever it suits you.

All our online quotes are fee-free and completely without obligation.

The key difference between level term vs decreasing term is the sum assured.

Unlike decreasing term which reduces in value throughout the policy, level term life insurance remains fixed, (or level).

This means that regardless of what point during the policy you pass away, your loved ones will receive a fixed sum.

Due to this increased level of cover, level term cover is generally more expensive than decreasing term for the same sum assured.

As mentioned, decreasing term cover is ideal for helping cover a repayment mortgage as the pay out can be set to decrease in line with your remaining balance.

Level term life insurance, on the other hand, is more suitable for helping cover aspects which do not reduce over time.

For example, an interest-only mortgage, an inheritance or funeral costs.

A decreasing term policy provides a life insurance pay out to your loved ones if you pass away during the set term.

As a result of being term-based, it is possible to outlive your policy and your beneficiaries do not benefit from your investment.

The value of the pay out will obviously be influenced by how far into the policy you pass away.

After you are gone your beneficiaries simply need to claim on your policy in order to receive the proceeds.

If you have purchased your policy through Mortgage Generator our customer services team will happily help you through the claims process.

Taking out joint decreasing term life insurance, as opposed to two singles policies, can save you on average around -25%.

The biggest criticism of a joint life insurance policy is that it only pays out once, (usually on the first death). This then leaves the surviving partner uninsured.

Equally, if both partners were to die simultaneously, one pay out may not be sufficient to cover to the loss of two people, (especially if you have children).

However, if the sole purpose of the cover is to help pay off the mortgage, this is likely to be sufficient to meet the needs of loved ones.

If you have additional costs to cover level term life insurance may be more suitable.

No. Whilst it is not a legal requirement to have life insurance in order to purchase a property with a mortgage, it is generally recommended.

Without life insurance, your passing could mean that your family would be left to repay the mortgage.

Failure to meet this cost could result in the home being sold and your family having to relocate at an already difficult time.

On occasions, some lenders will request that you have life cover in place before agreeing to release funds.

Whilst decreasing term life insurance is designed to cover a repayment mortgage, it is not guaranteed to cover the full balance.

In order to help ensure this, it is crucial that the interest rate of your mortgage does not exceed that of your decreasing term policy.

If the interest rates do not correlate, the sum assured from your life insurance could decrease faster than your mortgage balance, meaning a pay out may not be sufficient to cover what is owed.

Insurers offer different interest rates, therefore, when arranging your policy, it is essential to compare quotes to ensure you get the right cover.

Changing your mortgage can increase the amount you owe your lender and change the interest rate.

Both of these could affect the suitability of your decreasing term life insurance policy.

Borrowing more money from a lender could mean that the sum assured you originally arranged is no longer sufficient to cover what is owed on your property.

However, some providers allow you to evoke a special events option in this circumstance. This allows you to increase your level of cover without the need for any additional underwriting. You should check whether this option is included in your policy.

A change of interest rate could mean that your sum assured now declines at a faster pace than the remaining balance of your mortgage.

As a result, a pay out may not provide the necessary funds to cover the remaining mortgage, if the worst were to happen to you.

Regardless of your reason for remortgaging, it is always best to get in touch with your insurer to ensure your policy still meets your needs.

It may also be beneficial to obtain a new set of quotes from us here at Mortgage Generator, who may be able to secure you a better deal.

Whilst decreasing term life insurance is typically used to help cover a repayment mortgage, it can also be beneficial in other instances.

For example, to help cover other larger outstanding debts, such as credit cards and finance plans.

It may also be suitable for those with older children who do not feel a large pay out will be as essential in the coming years due to their growing financial independence.

As mentioned, decreasing term life insurance tends to be the cheapest form of life insurance.

Therefore, it is also ideal for those looking for some form of cover who perhaps do not have the budget for other forms of life insurance.

Upon your passing, your life insurance forms part of your legal estate, which also includes your property, possessions and savings.

As a result, any value in excess of £325,000 is subject to 40% inheritance tax (IHT), reducing the amount received by your loved ones.

Thankfully, it is possible to write your decreasing term life insurance in trust which can detach it from your estate.

This is a legal agreement by which you sign the rights to your life insurance over to a trustee, (similar to an executor of a will).

By detaching your decreasing term pay out from your estate, it is no longer subject to inheritance tax, meaning that 100% of its value is received by your beneficiaries.

It also reduces the overall value of your estate, minimising the amount of inheritance tax paid.

Writing your life insurance in trust also avoids probate, ensuring your loved ones receive the funds quicker.

It also allows you more control over how the pay out is received (going directly to loved ones as opposed to paying outstanding debt in your name), although this is at the discretion of the trustee.

As discussed, decreasing term life insurance tends to be arranged as protection for your mortgage.

However, statistically, you are far more likely to fall critically ill, than to die.

For an additional cost, it is possible to add critical illness cover to your life insurance policy.

This will provide a pay out if you are diagnosed with a serious, yet not terminal, illness.

It is ideal for helping cover mortgage repayments if you were too ill to work for a prolonged period of time.