Life insurance isn't one product - it's three, each suited to a different need. We explain the difference in real terms: what pays out, when, and how much, so you buy cover that actually does the job your family needs it to do.
Level term assurance
A fixed lump sum paid if you die within the term. The payout and premium stay the same throughout. Best for interest-only mortgages or leaving a fixed inheritance.
- Fixed lump sum, fixed premium
- Suitable for interest-only mortgage cover
- Payout doesn't reduce over the term
Decreasing term assurance
The payout reduces over the term, roughly in line with a repayment mortgage balance. Cheaper than level term, and the natural fit for a repayment mortgage - the cover shrinks as the debt does.
- Payout reduces in line with a repayment mortgage
- Lower premium than level term
- Ideal match for repayment mortgage protection
Family income benefit
Pays a regular monthly income rather than a lump sum, for the remainder of the term. Often the most practical cover for families - replacing the lost income directly, rather than a lump sum they'd need to manage.
- Regular monthly income, not a lump sum
- Replaces lost earnings directly
- Often the most practical family cover
Common questions
Should I write my life insurance in trust?
Usually yes - it pays out faster, outside your estate, and avoids inheritance tax. We'll arrange the trust documentation at no extra cost.
Level or decreasing term for a repayment mortgage?
Decreasing term is the natural match - the cover reduces as your mortgage balance falls, keeping the premium lower. Level term suits interest-only mortgages or a fixed inheritance goal.