What is the difference between level and decreasing cover?
Most life policies offer two options, 'level cover' and 'decreasing cover'.
For 'level cover', you choose the size of the sum assured. If you die during the policy, this amount can be paid out to your loved ones. The amount that can be paid out stays the same over the length of the policy. You will pay the same amount each month and this will not change during the length of the policy.
For ‘decreasing cover’, the amount paid out decreases over the length of the policy. Some people use this when they have a repayment mortgage or other commitments that gradually get repaid. The amount you pay is typically cheaper than level cover, and also stays the same each month.
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