Help protect your mortgage or other reducing debt with cover that can go down over time. Get a decreasing term life insurance quote in minutes
Premiums from £5 a month for £120,000 payout1
99.1% of life insurance claims paid in 20242
Available for UK residents aged 18-70
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Decreasing term life insurance helps cover debts like a mortgage, loan, or credit card if you pass away during the policy term. The payout amount goes down each year, eventually reaching zero, just like your debt would. Your payments stay the same throughout.
This way, your family won’t be left with unpaid bills if something happens to you.
Keep in mind, the interest rate on your debt can affect the cover amount you receive. For example, most providers cap their cover rate between 6% and 8%. So, if your mortgage rate is higher than this, your insurance may not clear your total debt. At Post Office, our cover rate is capped at 8%.
With decreasing term life insurance, you only pay for the cover you need. This makes it an affordable option to ensure your loved ones aren’t left with outstanding debt.
If you have children, they’re likely to rely on you less financially as they get older. This means it might not be necessary to leave them a large payout, making decreasing term life insurance the right fit for you.
Many people choose decreasing term life insurance to cover a mortgage or other debts that go down over time. These policies are designed to match your repayment schedule, so as you pay off your debt, the payout amount decreases too.
Decreasing term policies usually have the lowest premiums among the three main types of term life cover. This makes it a good choice if you want life cover but need to keep monthly premiums low.
Overall, decreasing term life insurance can help protect your loved ones from financial stress if you were to pass away during your policy term.
Here's a quick summary of how the decreasing cover option works on Post Office Life Insurance.
| What's it for? | Paying off debts like a mortgage, loan or credit card if you pass away, as long as the interest rate isn’t above 8% |
|---|---|
| Fixed cash sum payout? | No, the payout goes down over time to match your remaining debt |
| What's the maximum payout? | Up to £750,000, depending on age |
| Age limit | Ages 18-70 |
| Are health-related question asked? | Yes |
| Is terminal illness cover included? | Yes |
| Can I add critical illness and children’s cover to my policy? |
Yes, for an additional cost About critical illness and children’s cover |
To make sure you’ve the right amount of cover for your needs, consider the following three questions.
What do you need to protect?
How much cover do you need?
How long do you need the cover for?
Think about whether you have a mortgage, other outstanding debts, or a combination of these. If you have a repayment mortgage, consider how much is outstanding. How long until it’s paid off?
Our life insurance calculator is an easy way to estimate how much cover you may need in your current situation. Simply enter a few details into the calculator to start.
As well as decreasing term. Post Office offers two other types of life insurance too; level term and increasing term.
With level term life cover, your loved ones get the same fixed amount of money whenever they make a claim. But this type of cover doesn’t adjust for inflation, so if you have a long-term policy, the payout might lose value as the cost of living goes up. This could make the amount feel less impactful in the future. Level term cover could be the right option if you want a set amount left behind to cover specific costs, like family bills or debt, without needing to pay for higher premiums over time.
Increasing term life insurance can help you leave your loved ones a legacy too. It may also suit if you want your policy to adjust with inflation, and so retain its real-terms value. It considers the rising cost of living, so the payout value increases over time. The premiums you pay increase too. They’re often higher than for level and decreasing cover.
Here’s what else to think about if you’re considering decreasing term life insurance.
Decreasing term cover provides a payout that goes down over time to match a mortgage or loan balance. It’s good for covering debts but may not leave much extra for your family
For long-term policies, the reduced payout may not keep up if your debts have high interest rates. Most providers cap their cover rate between 6% and 8%
Payouts from decreasing term life cover may be subject to inheritance tax. It’s important to factor this in when deciding how much cover you need
Some insurers allow decreasing term policies to be placed into trust. This means they won’t be counted in your estate for inheritance tax calculations, under certain conditions
Estate and tax planning is complex. It's worth talking to an independent financial advisor or solicitor about your specific circumstances
When you buy Post Office Life Insurance, you’ll also get a special reward. Choose a gift card from a choice of retailers or an unforgettable experience by getting a quote online or by phoning 0330 123 3921^.
† Qualifying period, minimum premiums and terms and conditions apply
† Qualifying period, minimum premiums and terms and conditions apply
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Post Office Life Insurance is underwritten and administered by Scottish Friendly Assurance Society Limited. Neilson Financial Services Limited assist in the administration. If you buy Post Office Life Insurance over the telephone or online via the Post Office website, it is arranged and sold by Neilson Financial Services Limited, following an introduction by Post Office Limited. If you buy Post Office Life Insurance online via a price comparison website, it is arranged and sold by the firm that provides the price comparison website services.
Post Office Limited is an appointed representative of Post Office Management Services Limited which is authorised and regulated by the Financial Conduct Authority, FRN 630318. Registered in England and Wales. Registered numbers 2154540 and 08459718 respectively. Registered office: 100 Wood Street, London, EC2V 7ER.
† Gift card or Experience offer ends 30 April 2027. Minimum premiums and 180-day qualifying period applies.
* Restrictions apply, see amazon.co.uk/gc-legal
Post Office Life Insurance is for customers who are UK residents aged 18-70 at the start of the policy. The minimum term is 5 years and cover must end before your 90th birthday.
We won’t pay a claim if you don’t keep your payments up to date as you will no longer be covered under the policy. If you don’t tell us something or give us incorrect answers to our application questions that affects your cover, we may reduce the amount we pay for a claim or at worst cancel your cover and not refund your monthly payments.
1 Based on 21-year-old non-smoker in good health buying £120,000 level cover over a 21-year term.
2 Post Office Life Insurance is provided by Scottish Friendly. Scottish Friendly paid 99.1% of life insurance claims they received in 2024.
3 Data accurate as of March 2026.
^ Opening Hours: Monday to Friday: 9am - 8pm, Saturday: 9am - 5pm, closed on Sundays and bank holidays. Call charges: Calls to 03 numbers will cost no more than calling a standard UK number starting with 01 or 02 from your fixed line or mobile and may be included in your call package. Calls may be monitored or recorded for training and compliance purposes.