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Sainsbury's Bank

Decreasing Life Insurance

Provided by Legal & General

Decreasing Life Insurance

What is Decreasing Life Insurance?

Many of us rely on a mortgage to buy a home. But what would happen if you were no longer around? Could your partner afford the mortgage repayments by themselves? Would your family have to downsize?

Decreasing Life Insurance is an insurance policy which covers your mortgage repayments in the event of your death. The coverage typically reduces over time, at a predetermined rate, as you naturally pay back your mortgage at a steady rate over the course of your life, and therefore require less coverage later in life.

Having adequate Decreasing Life Insurance in place helps take away any of your loved ones’ concerns. It could ensure your family can stay in the home they love if you were to die during the length of the policy. This cover can cost you as little as £5 a month, when you buy through Sainsbury’s Bank, depending on the amount of cover you need.

Why choose a life insurance policy through Sainsbury’s Bank?

  • Protection by one of the UK’s largest life insurance providers, Legal & General
  • We’ll double the Nectar points on your Sainsbury’s shopping and fuel ‡
  • Discount on your Life Insurance or Decreasing Life Insurance premiums (with or without Critical Illness Cover) just for being a Nectar Member*
  • Up to £110 Nectar points if you purchase a new Life Insurance policy †. You'll receive your points within 60 days after you've paid 5 months' premiums.

The number of Nectar points you receive depends on your monthly premium.

  • If your monthly premium is under £8.50, we'll give you 10,000 Nectar points (worth £50)
  • If your monthly premium is £8.50 - £20.00, we'll give you 16,000 Nectar points (worth £80)
  • If your monthly premium is over £20.00, we'll give you 22,000 Nectar points (worth £110)

How does Decreasing Life Insurance work?

Decreasing Life Insurance is a type of insurance specifically designed to help protect a repayment mortgage. It’s sometimes known as mortgage life insurance. Unlike Life Insurance, the amount of cover reduces roughly in line with the way a repayment mortgage decreases.

Your premiums will stay the same unless you make any changes to the policy, and can be paid on a monthly basis.

What’s covered?

The policy can help protect a repayment mortgage, to give you peace of mind that your family can continue living in their current house if you were no longer around. This is what you can expect when you take out a Decreasing Life Insurance policy:

  • In the event of death or diagnosis of a terminal illness (where life expectancy is less than 12 months) during the length of the policy, your family could receive a cash sum. This could be used to help pay off any remaining mortgage.
  • The amount of cover reduces roughly in line with the way a repayment mortgage decreases.
  • The premium remains unchanged during the length of your policy, unless you make any changes to the policy.
  • If your application is not accepted straight away, Accidental Death Benefit is automatically included for no extra cost while your application is assessed. Terms & Conditions apply.
  • You have the option to add Critical Illness Cover at an extra cost when you take out your policy.

Before you apply

You should know that life insurance isn’t a savings or investment product and has no cash value unless a valid claim is made. It's your responsibility to make sure your policy is right for you, so if you need any advice then you should get in touch with a financial advisor. Please read the Policy Booklet and Policy Summary [PDF 113KB] before you apply.

If you stop paying premiums before the end of your plan, your cover will end 30 days after your missed payment If your Decreasing Life Insurance is to cover your mortgage, your policy may not completely pay off your outstanding mortgage unless you make sure your amount of cover is adjusted to match any new mortgage arrangements. You must also check that the interest rate on your mortgage does not become higher than the rate applied to the policy. The rate will be shown in your Personal Quote or the Policy Booklet.


Add Critical Illness Cover

If you suffer a critical illness, it can often have a significant impact on your life. You may have to reduce your working hours or stop work completely - or you might have to make lifestyle changes and modify your home. All this can have a serious effect on your finances. That’s why anyone taking out a Life Insurance or Decreasing Life Insurance policy should consider adding critical illness cover for an additional cost when taking out their policy.

Critical Illness Cover only covers the specified critical illnesses, for example it does not cover all forms of cancer. To make a claim for some illnesses, you need to have permanent symptoms. Find out which critical illnesses are covered.


Do I need Decreasing Life Insurance?

As with any insurance policy, whether you need Decreasing Life Insurance will depend on your circumstances. If you’re looking for a policy to help pay off the remaining balance of a repayment mortgage if you die during the length of the policy, Decreasing Life Insurance could suit your needs.

Life Insurance calculator

This life insurance calculator will quickly help you work out how much cover you might need. 

Explore our FAQs

Got a query about life insurance? Here are some of the most commonly asked questions.

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For questions and quotes

Call 0800 027 7166*

Lines are open:
08.30am - 8pm, Mon - Fri
09.00am - 1pm, Sat

*Telephone calls may be recorded for security purposes and monitored under Legal & General's quality control procedures. Calls free from a landline and mobile if calling from the UK.

Offer Terms and Conditions

† Up to £110 of Nectar points
1. This offer is only available when you take out a new Life Insurance or Decreasing Life Insurance policy. Purchases through price comparison, cashback, voucher code and similar sites are excluded.
2. After you’ve paid 5 months’ premiums, we'll give you: 22,000 points (worth £110) if your monthly premium is over £20, 16,000 points (worth £80) if your premium is £8.50 - £20.00 or 10,000 points (worth £50) if your premium is under £8.50
3. We'll add the points to your Nectar account within 60 days
4. You need to tell us your Nectar card number when you apply
5. We'll award points on no more than 2 policies per household in any 12 month period
6. Sainsbury's Supermarkets Ltd award the points from this offer. No cash alternative is available
7. Sainsbury’s Bank reserve the right to change or cancel this offer without notice

‡ Double Nectar points  offer – 1. Offer available to customers buying a new life insurance, decreasing life insurance or over 50s life insurance policy. 2. You need to tell us your Nectar card number when you apply; and scan or swipe that card, or input your card number, with each Sainsbury’s purchase. 3. Double points begin on your policy’s cover start date. If you tell us your Nectar card number after your cover start date, double points begin on the date you tell us. 4. Double points stop when the policy is cancelled or you stop paying premiums. 5. Each Nectar account can only collect points from one life insurance policy. 6. It’s only the base points you collect at Sainsbury’s that are doubled. Bonus points won’t be doubled, nor will any points from Argos, Habitat, Sainsbury’s Bank (including travel money purchases), Sainsbury’s Energy or any other Sainsbury’s service. 7. By the 10th of each month, you’ll get a bonus point award equal to the total of your qualifying points during the previous month, up to a maximum of 20,000 points. 8. Sainsbury's Supermarkets Ltd award the points from this offer. No cash alternative is available.  9. We reserve the right to change or cancel this offer without notice.

*Discount for Nectar members – Legal and General will automatically apply a discount to your quote(s) when you provide a valid Nectar card number, either online or over the phone to a call centre agent.  The discount will not reduce the premium below the minimum of £5 per month.