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Is Decreasing Life Insurance Worth It?

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When considering life insurance options, one common question that often arises is whether decreasing life insurance is worth it. Understanding the benefits and drawbacks of this type of policy can help you make an informed decision about whether it is the right choice for you and your loved ones.

What is decreasing life insurance?

Also known as decreasing term insurance, it is a type of policy where the payout amount decreases over time. This means that the amount of cover decreases as the policy term progresses, typically in line with a specific debt such as a mortgage. This policy is often chosen to cover a specific financial obligation that reduces over time, such as a repayment mortgage.


One of the main benefits of decreasing life insurance is that it offers cover specifically designed for things like paying off a mortgage. Since the payout amount goes down over time, these policies are usually cheaper than other types of life insurance, making them a good choice for people who want to protect a debt that gets smaller over time.

Another advantage of decreasing life insurance is that it can provide peace of mind knowing that your loved ones will be financially protected in the event of your death. By ensuring that your mortgage or other debts will be paid off, you can help alleviate the financial burden on your family during a difficult time.


While decreasing life insurance offers certain benefits, it’s essential to consider the drawbacks as well. One potential downside is that the cover amount or payout will reduce over time, which means that the policy may not provide sufficient cover for your family’s needs in the future. If you have other financial obligations or dependents to consider, a decreasing life insurance policy may not offer adequate financial protection.

Additionally, decreasing life insurance policies are typically designed to cover a specific debt, such as a mortgage, and may not provide cover for other expenses or financial needs. If you require more comprehensive cover, you may need to consider alternative life insurance options – such as whole of life or index linked life insurance.

Did you know: 

  • On average, premiums can be 10-20% lower than level term policies due to the reducing payout over time.
  • The typical duration of policies aligns with the length of a mortgage, often ranging between 20 to 30 years.
  • The demand for decreasing term life insurance has seen steady growth, particularly as property prices and mortgage values have increased, making it a cost-effective solution for many families.

Determining Your Protection Needs.

To determine whether it is worth it for you, it’s essential to evaluate your individual financial situation and goals. Consider the specific debt you want to protect, as well as any other financial obligations or dependents you may have. By understanding your needs and priorities, you can make an informed decision about whether decreasing life insurance is the right choice for you and your loved ones.

Get a Quote Today.

If you’re considering decreasing life insurance and want to explore your options further, why not get a quote today from The Insurance Surgery? As specialists in life insurance, we can provide advice and help you find the right policy to suit your needs and budget.

With our expertise and access to a wide range of insurers, you can trust The Insurance Surgery to guide you through the process and ensure that you have the protection you need for peace of mind. Don’t delay—get your quote today and take the first step towards securing your family’s financial future…

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