Choose your cover
Decide the length of the policy and the initial payout, which will then decrease each year in line with a reducing debt like a mortgage.
Decreasing life insurance
Compare decreasing life insurance.
Quotes from £8.07
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What is decreasing term life insurance?
Decreasing term life insurance pays out a cash sum if you die during the policy term, but the payout reduces over time.
It’s a good option if your main aim is to ensure your loved ones could repay a mortgage or another debt that shrinks over time.
Premiums stay the same throughout and are usually cheaper than level term life cover.
Decreasing term cover is also known as mortgage life insurance.
📍 Am I eligible for decreasing term life insurance?
The main requirements are usually:
✔ Age 18-75
✔ UK resident with legal right to live here
📍 Do I need life insurance to get a mortgage?
Not legally. However, some lenders will insist you take out some type of life insurance before they will approve you for a loan.
📍 What happens if I pay off my mortgage early?
Your premiums and payout would not change. Although this policy is designed to cover mortgages, it is not linked to your repayments.
How does decreasing term life insurance work?
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Apply for cover
Complete an application, which includes personal and health details. You'll need to declare any medical conditions you have.
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Underwriting
The insurer reviews your information. They may ask extra medical questions or request a GP report to confirm your health status.
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Policy starts
Once approved, you’ll receive your policy documents confirming your cover amount, term length and monthly premium.
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Pay your premiums
You’ll pay the same fixed amount each month throughout the policy term, keeping costs predictable.
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Make a claim
If you pass away during the policy term, your beneficiaries notify the insurer to start the claims process.
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Payout
After the claim is approved, the insurer pays the agreed lump sum, usually within a few weeks.
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Policy ends
If you outlive your policy term, the policy simply ends. No money is paid out or refunded.
How much does decreasing term life insurance cost?
How much is decreasing term life insurance?
£20
.83^
51% of our customers pay this price or less for a decreasing term policy.
What's the cheapest price I could pay?
£8
.07^
10% of our customers pay this price or less for a decreasing term policy.
What impacts the price of decreasing term life insurance?
Your age
Your health and medical history
Your BMI
If you smoke
The risk level of your job and hobbies
Policy length and level of cover
Age 18-49 | Age 50-59 |
|---|---|
£19.92 | £37.89 |
Non-Smoker | Smoker |
|---|---|
£19.88 | £27.97 |
Tables show median life insurance prices for MoneySuperMarket customers.
What are the advantages and disadvantages of decreasing term life insurance?
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Advantages
Protects your home: Ensures your loved ones can pay off the mortgage and therefore stay in the family home
Cheaper premiums: Decreasing cover is usually the most affordable type of life insurance
Avoids over-insuring: Ideal if you only want cover for a shorter time or specific debt
Predictable payments: Premiums stay the same throughout the term, making budgeting easier
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Disadvantages
Risk of under-insuring: If your mortgage doesn’t fall in line with your policy, the payout may not cover the remaining balance
May not fit future needs: New debts, children or wider financial needs might require more cover, and replacing a policy later can cost more
Needs regular review: Because the payout reduces each year, you’ll need to review it to make sure it still matches your mortgage
No cash value: If you outlive the term, the policy ends and no money is paid out
How can I make my decreasing term life insurance cheaper?
When it comes to picking life insurance, cheapest isn’t always best. Cheaper premiums often mean less cover, which could leave your family under-protected if the payout or features don’t match what they’ll realistically need.
However, there are ways to get a better deal on your ideal policy:
Compare quotes
Different insurers can offer very different prices for the same level of cover, so shopping around is one of the easiest ways to avoid overpaying. MoneySuperMarket helps you quickly compare a wide range of policies in one place, so you can find the right cover at a price that works for you.
Buy early
Life insurance usually costs less when you take it out at a younger age. Applying sooner can lock in cheaper premiums for the whole term of your policy.
Limit risk factors
Improving your lifestyle – for example by quitting smoking or reducing alcohol intake – can lower your health risks and may reduce the cost of your life insurance.
💡 Top tip: Many insurers will review your price once you’ve been an ex-smoker or vaper for a full year. It’s worth asking for a reassessment if you’ve quit.
Don’t over-insure
Choosing cover, add-ons or a higher payout than you really need will push up your premiums. Working out what your family would genuinely benefit can prevent you from paying more than necessary.
Bundle products
Some insurers offer discounts if you take out more than one type of cover with them. For example, combining life insurance with critical illness protection.
While this isn’t always the cheapest overall option, it’s worth checking whether a multi-policy discount could give you more cover at a discounted rate.
Keep your policy up to date
Reviewing your cover regularly helps make sure you’re not paying for protection you no longer need. For example, if your mortgage balance has reduced or your dependants are financially independent, you may be able to adjust your cover and cut costs.
What are the different types of life insurance and protection insurance?
Alongside decreasing term insurance, there are other products that can help protect your family:
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Level term insurance
Pays out a fixed cash sum if you die within the policy term.
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Critical illness cover
Pays out if you are diagnosed with a serious illness.
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Income protection
Pays out a percentage of your salary if you temporarily cannot work.
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Over 50s insurance
A whole of life policy offering guaranteed cover and payouts.
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Joint life insurance
Covers two people. Only pays out once, on the first death.
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Increasing term
Payout increases over time, generally in line with inflation.
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Whole of life cover
Also known as life assurance, pays out whenever you die, rather than being restricted to a term.
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Death-in-service
Some businesses will pay out if staff die while employed by them.
Our expert says…
Although decreasing term life insurance is designed to cover your home, it is not linked to your mortgage balance. If you remortgage, especially in a period of rising interest rates or when extending your mortgage term, your decreasing term life insurance won't adjust to these changes. That means the policy can drift out of sync with what you owe, potentially leaving a shortfall if you were to make a claim. To avoid this, review your cover whenever you remortgage to make sure it still provides the protection you intended.
Kara Gammell Personal Finance & Insurance Expert
Free shopping gift card
Get up to £400^ to spend on a variety of retailers when you buy life insurance through MoneySuperMarket.
Found the perfect policy to safeguard your family's future? Have an extra reward on us.
Gift cards start at £35 for life insurance policies with monthly premiums of £10 or less and go up to £400 for policies with monthly premiums over £90.
See our terms and conditions for more information.
Restrictions apply. One voucher per person. Not available to customers who previously received a voucher with a life insurance policy purchased after 1st May 2022.
Why should I compare decreasing term life insurance quotes with MoneySuperMarket?
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Quotes from 19^ UK insurers
All our insurance providers are authorised and regulated by the Financial Conduct Authority (FCA).
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Rated 4.9/5 on Feefo
We're also the UK's most recommended price comparison website
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Quick and easy
Give us a few details and we'll show you multiple quotes in minutes, saving you time and effort.
Compare quotes from leading life insurers
We only work with FCA-regulated companies, which means they meet strict standards for fairness, transparency and customer protection.
Trusted Service Awards Winners
MoneySuperMarket has won the Feefo Platinum Trusted Service Award, an independent seal of excellence, which recognises businesses that consistently deliver a world-class customer experience.
What do I need to get a decreasing term life insurance quote?
To help you find the right life insurance cover, we just need a few minutes of your time and the following information to get you a personalised quote:
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Personal details
Such as your name, address, date of birth, and occupation
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Your health
Any pre-existing medical conditions and basic health information, such as height and weight.
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Lifestyle
For example, if you're a smoker or drinker, or engage in any activities that may be classed as dangerous
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Cover required
Including the type of life insurance you want, if you want to cover your spouse or partner, and how much you would like to pay
Prefer to speak to someone about life insurance?
We’ve partnered with LifeSearch to give people more guidance when buying life insurance. If you’d like some help you can talk to LifeSearch free of charge.
Call LifeSearch on:
0800 316 3166
How do we work with LifeSearch?
MoneySuperMarket has a long-standing partnership with LifeSearch, one of the UK's leading protection advice specialists.
LifeSearch has been protecting people for over 25 years. Since 1998, they’ve helped over a million individuals, families, and businesses secure 1.7 million policies.
When you compare life insurance through MoneySuperMarket, you’ll see options from insurers LifeSearch work with — helping you find cover that fits your circumstances.
Your policy will always be taken out with the insurer you choose, but LifeSearch can support you at every stage, from applying for cover to making a claim. You can also manage claims directly through their website.
We receive a commission for referrals, but this never affects the price you pay for your policy.
➡️ Find out more about how MoneySuperMarket makes money
Opening hours
Opening hours are:
Monday to Friday 8 am to 8 pm
Saturday 9 am to 2 pm
Sunday 10 am to 3:30 pm
Does a decreasing term life insurance payout have to be spent on a mortgage?
No. The payout can be used however your beneficiaries choose. Most people use it to clear a mortgage or debt, but it could also be used for everyday bills, funeral costs, or anything else they require.
Is my decreasing term life insurance still valid after I’ve finished paying off my mortgage?
Yes. Your decreasing term policy remains valid until the end of the term, even if your mortgage has been paid off early. The policy will still pay out if you make a valid claim during the term, regardless of whether you still have a mortgage.
Can I get decreasing term life insurance if I have a pre-existing medical condition?
Yes, you can generally get decreasing term life insurance with a medical condition. You may pay more and might need to provide medical information or undergo checks.
Does decreasing term life insurance cover joint mortgages?
Yes, but in this situation you may want to take out a joint decreasing term life insurance policy that covers two people under one policy.
These policies typically pay out once, on the first death, after which the cover ends.
Can decreasing term life insurance cover an interest-only mortgage?
No. Interest-only mortgages don’t reduce over time, so a decreasing policy is unlikely to be suitable.
Does decreasing term life insurance cover terminal illness?
Yes, most decreasing term life insurance policies include terminal illness cover as standard.
This means the policy can pay out early if you’re diagnosed with a condition that’s expected to be fatal within 12 months, according to a medical professional. The early payout can help with medical costs, household bills or putting financial arrangements in place, and the policy will then end.
Always check your policy documents, as the exact definition of ‘terminal illness’ and the evidence required can vary between insurers.
Can I get critical illness cover with a decreasing term life insurance policy?
Yes. Critical illness cover can usually be added to a decreasing term life insurance policy for an extra cost.
It pays out a lump sum if you’re diagnosed with one of the serious medical conditions listed in your policy, and the policy will then end. This is separate from terminal illness cover, which many decreasing policies include as standard.
Is decreasing term life insurance tax-free?
The payout from a decreasing term life insurance policy is usually free from income tax and capital gains tax. However, it may still be subject to inheritance tax (IHT) if the money forms part of your estate when you die.
If the total value of your estate exceeds the IHT threshold, your beneficiaries could lose a portion of the payout. In the UK, IHT is charged at 40% on the portion of your estate that exceeds the current £325,000 threshold (or £650,000 for some married couples and civil partners).
One way to avoid this is to write your policy in trust, which keeps the payout outside your estate so it can go directly to your beneficiaries, usually more quickly and without being taxed.
What’s the difference between decreasing term and mortgage life insurance?
They’re often used interchangeably - mortgage life insurance usually refers to a decreasing term policy.
What happens at the end of my decreasing term life insurance policy term?
At the end of your policy term, your decreasing term life insurance simply ends. The payout will have reduced to £0 by the final year, and no money is returned. If you still want life cover, you’ll need to take out a new policy, but bear in mind that premiums are likely to be higher as you’ll be older and may need new medical checks.
Some providers let you adjust your policy mid-term. For example, you could change the length of the policy or alter the payout. But this isn’t guaranteed, and insurers may cap how much you can increase your cover. Some may also charge an admin fee.
Can I cancel my decreasing term life insurance policy?
Yes. You can cancel your decreasing term life insurance at any time by contacting your insurer. However, you normally won’t get back any of the premiums you’ve already paid.
Most policies include a cooling-off period, during which you can cancel and receive a full refund. This is usually 30 days, but it can vary.
After this cooling-off period, there’s no refund, and some insurers may charge an administration fee for cancellation. Always check your specific policy documents to understand any fees or conditions.
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At MoneySuperMarket, we want to give you clear, accurate and trustworthy information so you can make confident financial decisions for your circumstances.
Every page on our website goes through a careful editorial process before it is published. It’s written or reviewed by one of our experienced experts, checked for accuracy, and updated regularly to reflect the latest information.
We do use AI tools to support our research and drafting, but a human editor is always in the loop to review, fact-check and approve everything before it’s published, so you can trust that what you’re reading is both reliable and up to date.
You can read more in our editorial guidelines.
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We get paid by the companies we work with, but the payment we get doesn’t have any bearing on the information we provide. We get paid in different ways, depending on the type of product or service you buy through us. Our goal is to search deals from as wide a range of companies as possible, but we only show results from our partner providers.
Our comparison service is, and will always be, free to use.
Why should I use a price comparison website?
One of the best ways to get the lowest prices and best deals is to compare quotes from different companies. We do the work for you, comparing quotes side-by-side and giving you all the information you need so you can choose the right deal for your needs and your wallet.
We don’t give recommendations or financial advice, but we give you clear information so you can choose financial products that suit your circumstances.
Does MoneySuperMarket work with all the providers on the market?
No, not every company can be included in our service. This is because some companies don’t want their products included on comparison sites, and some decide that they would rather not pay a fee. There are also a few smaller providers who can struggle to cope with the volume of customers that can find their products if they appear on MoneySuperMarket.
Our goal is to search deals from as wide a range of companies as possible so that you can choose the deal that suits you.
Is life insurance eligible for SuperSaveClub and rewards?
No, at this time life insurance is not an eligible product for unlocking our SuperSaveClub rewards. It is also not included in our Price Promise.
Reviewed on 8 Dec 2025 by
Accurate as of 08 December 2025.
Selected providers. SuperSaveClub restrictions and T&Cs apply. Click here for details.
YouGov Survey 1st July 2024 to 30th June 2025. Net Recommend score derived from “Which of the following online service websites would you recommend to a friend or colleague, or tell them to avoid?” Base: Current Customers of (MoneySuperMarket n=18,382, Compare the Market n=16,802, Go.Compare n=10,162, Confused.com n=8,229, Uswitch n=528).
Annual saving based on 51% of customers transferring £2,275 from a 24.9% (variable) p.a. card, with a 5% monthly repayment (Nov 2025). BoE and UK Finance.
Representative example: transferring £2,275, 2.99% balance transfer fee, 0% over 35 months then 24.9% (variable) p.a. Representative 24.9% APR. Credit broker not lender. 18+ UK only. Subject to status. Moneysupermarket data correct as of 10th Nov 2025
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