Level vs. Decreasing Term: Which is Right for Your Mortgage?
Choosing the right type of life insurance to cover your mortgage is a crucial decision. This tool visually explains the difference to help you choose wisely.
Mortgage Protection Analyser
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Mortgage Term (Years)
Level vs decreasing term life insurance guide for mortgages
WeCovr's level vs decreasing term analyser helps UK homeowners choose the right mortgage protection, backed by FCA-authorised guidance and 900,000+ policies issued across protection products. It visualises how cover changes over time and the premium impact.
How the level vs decreasing term analyser works
The tool compares level term cover, where the payout stays fixed, with decreasing term cover, where the payout reduces over time. This is useful when deciding how to protect a repayment mortgage.
Illustrative premiums help you see the trade-off between cost and certainty.
Level term keeps the payout constant over the term.
Decreasing term aligns with a falling mortgage balance.
Results are indicative and not a formal quote.
Which option suits your mortgage
If you have a repayment mortgage, decreasing term is often the lowest-cost way to match the debt. If you want to leave a fixed lump sum or you have an interest-only mortgage, level term may be more appropriate.
Why WeCovr is trusted for mortgage protection
WeCovr provides FCA-authorised guidance with high customer satisfaction ratings. We also offer complimentary access to the CalorieHero AI calorie tracking app and discounts when customers take PMI or Life insurance.
Data sources and guidance references
This guide references FCA consumer guidance on protection insurance and typical UK mortgage structures.
Level vs decreasing term at a glance
| Cover type | Estimated cost | Payout structure | Best for |
|---|---|---|---|
| Level term | Higher | Fixed payout | Interest-only or legacy goals |
| Decreasing term | Lower | Declining payout | Repayment mortgages |
| Mixed cover | Varies | Two policies | Flexible needs |
Related WeCovr resources
FAQs
Is decreasing term life insurance cheaper?
Usually yes, because the payout reduces over time, which lowers the insurer's risk compared with level term cover.
Should I choose level term for an interest-only mortgage?
Often yes, because the mortgage balance does not reduce, so a fixed payout is needed at the end of the term.
Can I combine level and decreasing term policies?
Yes. Some people take a decreasing term policy for the mortgage and a smaller level term policy for extra family support.
Are these premium estimates exact?
No. They are illustrative and your actual premium depends on underwriting and insurer pricing.