Confused about fixed term and decreasing term assurance? You needn’t be with Direct Line.

At Direct Line, we offer two kinds of life assurance: Direct Line Fixed Term Life Cover, which provides an agreed lump sum decided when you take out your policy. This can help to provide for the financial security of your loved ones – for example pay off loans or cover education costs. And Direct Line Mortgage Life Cover, which provides decreasing term assurance, designed to provide a reducing cash lump sum that should meet the outstanding balance of your standard repayment mortgage and thereby put a roof over your family’s head if you die unexpectedly.

If you have a standard repayment mortgage it’s likely that you could have been offered decreasing term assurance with your loan. At Direct Line, our Mortgage Life Cover, or decreasing term assurance, is designed to cover a standard repayment mortgage. As the amount you need to pay back decreases over the term of a standard repayment mortgage as you pay it off, the life cover you need to protect your mortgage repayments also decreases over the agreed policy term.

Although it may sound complicated, applying for a decreasing term assurance quotation couldn’t be easier. Either give us a call or fill in the simple online form for a free quotation. As long as you provide all the details we need, Direct Line can do all the complicated stuff, like calculating how much your premium should be, and helping you apply for a policy.

Direct Line Mortgage Life Cover provides protection in the event of your death or terminal illness. In the event of terminal illness the sum assured may be made early if you tell us about it at least 18 months before the end of the policy term and subject to terms and conditions. The policies can also be taken out on a single or joint life first death basis. We also provide a policy that includes critical illness protection. Life and critical illness cover pays out a lump sum if you either die or are diagnosed with a critical illness that meets our policy definition. We only cover the critical illnesses we define in our policy and no others. Full terms and conditions of our Mortgage Life Cover policy, offering decreasing term assurance are easy to download from our website, but if you have any questions, just give us a call.

It’s worth noting that if you have an interest only mortgage, decreasing term assurance will not work for you, as your mortgage will not reduce over time. If however you intend to repay your interest only mortgage with an investment vehicle that does not include life cover (such as a stocks and shares ISA), you may want to have life cover for the mortgage amount and could use our Fixed Term Life Cover. If you die, this provides a lump sum in the event of the claim during the term of the policy.

To get a quote for Direct Line’s Mortgage Life Cover and the benefits of a decreasing term assurance policy, call us today or it’s also simple to buy online.