The difference between Level Term and Decreasing Term Life Insurance explained

What types of Life Insurance are there?

There are two main types of term Life Insurance cover, Level term and Decreasing term (also known as Mortgage term), which you can get as a Single or a Joint policy. In addition to your Life Insurance policy you can take out Critical Illness cover.


Level term vs Decreasing term

Choosing the best type of Life Insurance is a personal decision, there is no right or wrong answer. What you need may depend upon a range of factors including; your current situation, where you plan to be in the future, the amount of cover you need, and your monthly budget.

Types of Life Insurance

There are two main Life Insurance policy types that we provide, Level term and Decreasing term (also known as Mortgage term).

Consider looking at both Level term and Decreasing term cover when getting your Life Insurance quotes from Beagle Street to compare the type of cover available to you and the cost of your premiums.


Level term

Level term insurance allows you to fix your cover amount over a set policy term.

If you die during this term your family would receive a pay-out to this value.

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Decreasing term

Decreasing term insurance differs as your cover amount decreases in line with your mortgage, meaning your family will receive a lower pay-out than the initial cover amount. For this reason Decreasing term premiums are lower than level term insurance.

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Cover amount over time


Benefits of Beagle Street*

Trust Tool
FREE tool to place your policy in Trust.

Terminal Illness Cover
FREE Terminal Illness cover

Accidental Death Benefit
if you don’t get an immediate decision on your policy

Online Account
Online access to your account, so your policy documents are never lost.

Search Official Records
Unlike most other insurers, who wait for you to contact them, we actively search official records.

Personal Care Services
A dedicated hotline for bereavement counselling & support.


Took out life insurance as my husband and are recently married & have had a child.  Fab service, online policy and written policy sent quickly & efficiently. Would highly recommend.

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Jargon Buster

Making it easy to understand Life Insurance ‘jargon’

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33% of people do not consider Life Insurance when applying for a mortgage

Covering multiple lives: joint or single

If you are in a situation where you need cover for two lives then we offer two options; joint or single cover.

Two single policies


You also have the option to take two single policies. Having two separate policies will mean there could be two pay-outs.

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One Joint policy

young people life insurance

A joint policy can help protect two people within one policy. As there is just one policy, there is a single pay-out upon the death of the first policyholder. After this claim, the joint policy will cease.

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Your next decisions:

How much cover do I need?

Don’t know how much cover you need? Use our handy Life Insurance calculator for help.

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What’s different about us?

We make Life Insurance simple, find out some great reasons to buy Life Insurance with Beagle Street.

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Check out our collection of handy guide pages to help answer any further questions you may have about Life Insurance.

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How many Life Insurance policies can I have?

Your level of cover is based on your details within your application. Once a Life Insurance policy has been created it cannot be amended in the future, which is common for most Life Insurance providers. You have the option to consider both policy types.

You could experience life changing events, such as having a baby or buying a new property during your policy term, which could mean you need more cover.

To accommodate for life’s unforeseen surprises you can have multiple Life Insurance policies, whether you need both types of Life Insurance (level term & mortgage term) at the same time or if you’re married you can have both joint and separate single policies. See our maximum life cover limits for more details.

Mortgage term offers a cheaper way to top up your cover based on the additional financial responsibilities you may have. By having a level term and mortgage term policy it may provide you with better cover and value for your situation.

Do you have responsibilities that need to be looked after if you were to die?

We all have different responsibilities; from having a child to support to paying off the mortgage so your family can continue their life in the comfort they are accustomed to. The number and type of responsibilities you have may have a part to play in the type of policy you choose.

What's not a Type of Life Insurance policy?

The two main types of Life Insurance policy are covered above; it is a common misconception that critical illness cover & “life assurance” are classified as types of life insurance policy.

Critical Illness cover (CIC)

This cover can be added to your Life Insurance policy. It’s intended to protect your family should you be diagnosed with one of our covered critical illnesses. You can choose whether you add this cover to your policy within your quote. Click here to find out how CIC could help protect you family.

Life Assurance

Unlike “Life Insurance”, life assurance is intended to pay-out when you die as opposed to if you die. It is completely different to Life Insurance, and something we don’t offer here at Beagle Street. Click here for more details about life assurance vs insurance.

Protecting your Own Future

If you are diagnosed with a terminal illness that estimates you have less than 12 months to live, you can claim your life cover and spend the money as you wish (the claim cannot be made if you are diagnosed within the final 12 months of your policy term).