Life insurance Terms

Increasing Term:

An increasing term life policy takes changes to inflation into account, meaning your payout amount rises alongside the inflation rate. With small sums of money and over brief periods of time, you might not notice the effect of inflation.

Level Term:

Level term life insurance is where the amount you pay and your cover stay the same during a policy term unless any changes are made to the policy. This is regardless of whether the insured person passes away on the day the policy starts or the day before the policy ends.

Decreasing Term:

Decreasing term life insurance is a type of life insurance policy that pays out less over time. It's often used to cover the balance of a repayment mortgage, because the total balance of the mortgage decreases over time and will be paid off in full at the end of the term.

The typical length a life insurance policy is 20 to 25 years. This usually lines up with an outstanding mortgage, though it could be shorter or longer depending on your reason for getting it.