As with any type of insurance policy, this really depends on your own circumstances. Our Decreasing Life Insurance is designed for people who specifically want to cover a repayment mortgage, as it reduces roughly in line with the way a repayment mortgage reduces.
So if you’re looking for a policy that could help protect a repayment mortgage and give you peace of mind that your family can continue living in your home if something happens to you, this could be a suitable option.
Am I eligible to apply for Decreasing Life Insurance?
You must be a UK resident and 18 years of age at the time of applying and the policy must not end before your 29th birthday. The maximum age for buying a Decreasing Life Insurance policy is 74, and your policy must end before age 90. The minimum length of the policy is 5 years, and the maximum length is 50 years.
What is the difference between Life Insurance and Decreasing Life Insurance?
The main difference between Life Insurance and Decreasing Life Insurance is that they are designed with different protection purposes in mind. Some people want a policy that will help protect their family financially if they were to die during the policy term. Others may have a more specific need for a policy that will pay off their repayment mortgage if they were to die while covered by the policy. Below is a brief overview of the products we offer:
Life Insurance could pay out a cash sum on your death during the length of the policy. It can be used by your family to help protect their lifestyle and everyday living expenses or to help pay towards an interest only mortgage. The premiums and the amount of cover you choose stay the same, unless you alter your policy.
Decreasing Life Insurance is designed specifically to help protect a repayment mortgage, so the amount of cover reduces roughly in line with the way a repayment mortgage decreases.
Just remember that life insurance is not a savings or investment product and has no cash value unless a valid claim is made.
Can I add Critical Illness Cover to my Decreasing Life Insurance?
You can add Critical Illness Cover for an extra cost when taking out Life Insurance or Decreasing Life Insurance. It could pay out a cash sum if you’re diagnosed with or undergo a medical procedure for one of the specified critical illnesses that we cover, and you survive for 14 days from diagnosis. We cover many types of cancer, heart attack and stroke. However, some types of cancer are not included and to make a claim for some illnesses, you need to have permanent symptoms.
Please remember that these policies are not savings or investment products and have no cash value unless a valid claim is made.
What additional benefits are included if I buy Decreasing Life Insurance?
The additional benefits of buying Decreasing Life Insurance include Free Life Cover between the exchange of contracts and completion of your property purchase (or if in Scotland, from when you complete missives for your chosen property until the date of entry). You will also get Accidental Death Benefit while your application is processed – for cover in the event of accidental death – as well as Terminal Illness Cover, which could pay out the full amount of cover if you have a life expectancy of less than 12 months.
For certain life events, you may also be able to increase your cover without having to provide any further medical information. You can also make changes, such as removing a name from a joint policy.
All of the above have certain terms and conditions that apply, so please read the Additional Benefits page for all the information you need.
Do I have to take out Decreasing Life Insurance if I have a mortgage?
Technically, you do not need to get life insurance – or Decreasing Life Insurance in particular if you have a repayment mortgage – when you take out a mortgage. Legally, the only insurance you must take out is buildings insurance.
While you don’t have to take out mortgage life insurance, it could be a wise decision. If something happened to you and you were no longer around to pay the mortgage how would your family cope financially? This type if insurance could mean they get to stay in the home they love without the added stress of paying the mortgage. Want to know more? Read more about Decreasing Life Insurance.
Can I make any changes to my Decreasing Life Insurance?
We recognise that sometimes your protection needs change, so you can request any of the following changes to the policy:
extend or reduce the period of cover
increase or decrease the amount of cover
remove a life from a joint policy
change the frequency of your premium between annually and monthly
We also offer 'Joint life policy separation'. This allows a joint policy to be split into two new single policies if a couple divorce, dissolve their registered civil partnership or change a joint mortgage into one name or take out a new mortgage in one name. Your request must be made within 6 months of the event being finalised.
These changes could affect the premiums that you pay and we would have to assess any change based on your circumstances at the time.
After applying for cover you will receive a 30 day cancellation notice, which you must send back if you decide not to continue with the policy.
If you cancel within 30 days we will return any premiums paid. If you cancel after 30 days you won't get anything back.
If you’d like to discuss your cancellation, you can speak to a member of our team on 0370 010 4080. You can write to us at: Cancellations Department, Legal & General Assurance Society Limited, City Park, The Droveway, Hove, East Sussex BN3 7PY.
Please remember that life cover policies are not savings or investment products and have no cash value unless a valid claim is made.
Will I be eligible for the free gift?
If you buy Life Insurance or Decreasing Life Insurance with or without Critical Illness Cover directly from Legal & General, you could be eligible for a free gift card six months after your policy start date provided you haven’t cancelled your policy and your payments are fully up to date. If you have previously held and cancelled a Legal & General life insurance policy, with or without Critical Illness Cover within the last 18 months, you will not be eligible for this offer.
This offer is only available if you apply directly to Legal & General. If you apply through a Financial Adviser, or any website other than Legal & General’s, such as a comparison site, you will not be eligible for the free gift.
Yes, our Decreasing Life Insurance policy can be placed in trust. Putting your plan in trust can help protect your beneficiaries from inheritance tax, avoids probate and ensures the money gets to the right people quickly.
Want to know more about trusts without the usual jargon? Use our Online Trust Hub to help you choose the right type of trust for you. We explain the advantages and disadvantages, as well as how to set up the trust and who gets control over it. You can even enter your details online so the trust form is ready to be printed and sent back to us.