Decreasing Term Life Insurance Policy

What is Decreasing Term Life Insurance?

Decreasing Term Life Insurance (often referred to as Mortgage Term Life Insurance), pays out the outstanding balance of your cover amount, which decreases over time, should you die within the insurance policy cover period. This type of insurance could also cover your family for any other debts you have that could decrease in the future, such as credit card debts or loan repayments.


Decreasing Term could provide you with the cover amount you need right now, then gradually decreases as the policy ages. For this reason decreasing term Life Insurance is often a cheaper policy than Level Term insurance.

Decreasing or Level Term?

With Level Term your family can:

  • Maintain their living standards
  • Clear any debts
  • Pay-off any mortgage

With Decreasing Term you can:

  • Protect your loved ones from a reducing debt, such as a mortgage
  • Get a cheaper premium than with Level Term (for the same initial cover amount)
  • Still get a fixed premium over your policy term

Benefits of Beagle Street*

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Terminal Illness Cover
Terminal Illness cover included as standard.

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.

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Our policy is not directly linked to your mortgage, as the pay-out can be used to cover any debt. Although it is most often used to cover mortgage debt.

Our policy decreases in line with a mortgage that has a 6% interest rate; this is why your cover amount will reduce over the policy term.

If your mortgage interest rate is less than 6% then our policy could clear the outstanding debt.

Both policy types could be valuable

If you’re still unsure what type of policy will best suit your needs then it’s worth considering both, as they each cater for different needs. A Decreasing Term policy could act as a top up to your existing cover. This could be valuable in a scenario whereby your current Life Insurance was taken out some years ago and that cover amount no longer meets your needs, possibly due to upgrading your home.

The cover amount cannot be amended once a policy has been created, so in this scenario Decreasing Term could add more cover to match the new value you need.

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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 much life cover can I have?

Up to £750,000, depending on how old you are. Visit our policy overview for a full table reflecting the maximum cover for each age group.

What am I covered for?

You are covered for the value and term shown on your policy documents, which you can check in “My Account”. All Beagle Street Life Insurance policies cover you if you die during the policy term, or if you are diagnosed with a terminal illness prior to the last 12 months of the policy. By including Critical Illness insurance you will be covered if you are diagnosed with a Critical Illness listed in our policy terms. There are certain Critical Illnesses which are not covered within this policy, also found in the policy terms.

What am I not covered for?

You are not covered for suicide in the first 12 months of your policy. If you have added Critical Illness cover with your life policy you can review what Critical Illnesses are included in the policy terms and conditions.

Will my monthly payments change over time?

No. Payments are agreed and fixed at the beginning of your policy and are guaranteed to remain the same for the life of your policy (unless you cancel or have a successful claim against the separate Critical Illness part of your policy, in which case your premium will go down).

What is Level Term cover?

If the death has taken place during the policy term, the pay-out from us will be the same fixed value no matter whether the death has occurred at the beginning or near the end of the policy term.