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What's the difference between level and decreasing life cover?
Answer
Level cover provides the same amount of cover throughout the term of the policy, depending on how it was set up at the start. For example, if you chose £100,000 over 20 years and died in the last year, you'd get the full £100,000.
Decreasing cover reduces over the term of the policy and is usually cheaper than the level cover. Some decreasing cover policies reduce in specific amounts, for example, to match a mortgage or to cover an inheritance tax liability.