Level Term Life Insurance vs. Decreasing Term Life Insurance
All life insurance is the same… isn’t it? This is a common thought, but it isn’t true. There are various types of life insurance available, and they’re usually designed with a specific protection purpose in mind.
We have two types of life insurance:
Neither option offers better cover than the other, but you might find one suits your needs more closely. You can apply for both types of life insurance if you wish, subject to certain limits. You are also allowed to own several life insurance policies, even if this includes policies not with Direct Line.
Level Term Life Insurance
Level Term Life Insurance is usually the preferred choice to help make sure your family has financial protection if you die during the policy term. This is because it lets you choose how much cover you need, and the length of time you want to be insured for – the amount of cover will not change unless you alter your policy. And so you always know how much it will pay out.
Decreasing Term Life Insurance
Decreasing Term Life Insurance policies are suitable for helping to repay a capital and interest type mortgage if you die during the policy term. This way your family wouldn’t have to worry about how they’d pay the mortgage after you’d gone.
With Decreasing Term Assurance the amount you’re covered for decreases over time, so the amount of cover reduces roughly in line with the way a repayment decreases.
Do you want the best of both?
You can apply for both types of life insurance if you wish