Life Insurance - Level Verses Decreasing - Which One is Best?

By Ian Baldwin


So when you are taking out term insurance you are faced with the choice of either level or decreasing life assurance. There is a key difference between the two as one could possibly be worth much more than the other. Both can be take along side critical illness insurance.

Level term insurance means that the sum assured remains level throughout the term. it does not mean that the premium remains the same. If you take out life insurance over 25 years for 200,000 it means should you die within that period the policy is guaranteed to pay out 200,000. This is normally taken with an interest only mortgage or to protect the family. That's why its also know as cheap life insurance

A decreasing mortgage insurance policy means that the sum assured decreases year one year. So effectively the older you get the less its worth. As we are more likely to die the older we are these policies are cheaper but almost worthless at the end of their term. So beware if you take one out make sure you die early.

Also if you are not married make sure you put the policy in trust. This means if you were to die whoever is named in the trust will receive the benefits direct and not have to wait for probate. To get a quote for online mortgage insurance shop around online as there are some great deals to be had. Or if you are not sure get some life insurance advice.