Decreasing term life insurance is for a specific period of time and if you pass away during that period your policy will pay out the agreed amount as a tax free lump sum payment to the beneficiary(s). We can provide you with a range of policies to suite your budget.

What makes decreasing term life insurance different from basic term life insurance is that the value of the policy decreases over the term rather than remaining static. Decreasing term life insurance is most commonly used in conjunction with repaying the balance of a mortgage. It is designed to cover the outstanding mortgage amount should you die.

Your loved ones can receive a cash sum if you die during the cover period

The cash sum that would be paid out decreases over the cover period

The money can be used to pay off your repayment mortgage

If you have an interest only mortgage, or you want to be able to cover additional outgoings, then a level term life insurance policy would be a better option instead.

Gift Inter Vivos policy: -

This is a type of decreasing term life insurance policy that actually reduces at the same rate as the chargeable inheritance tax on an estate as a result of a Potentially Exempt Transfer (PET).

For example if you gift part of your estate away before death then this will be classed as a PET, this means that for a period of 7 years there could be tax due on the transfer. This amount of tax reduces by a set amount each of those 7 years

The Gift Inter Vivos plan is designed to track this reduction to make sure enough cash is available to cover the bill if the person who gifted the estate dies before the end of the 7-year point.

This type of insurance is very specialised and is used mainly in good Inheritance Tax Planning (IHT planning).