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 could help pay off your mortgage in the event of a valid claim. The coverage typically reduces over time at a predetermined rate. This is because you will pay back your mortgage at a steady rate over the course of the term, and therefore require less insurance coverage over time.
Having adequate decreasing life insurance in place helps take away some of your loved ones’ concerns. It could make sure 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.
Please note that this insurance is designed for a capital and repayment mortgage, it’s not suitable for an interest-only mortgage.
Why choose a life insurance policy through Sainsbury’s Bank?
- Protection by one of the UK’s largest life insurance providers, Legal & General
- Exclusive access to Legal & General Wellbeing Support Services
- Discount on your life insurance or decreasing life insurance premiums (with or without critical illness cover) just for being a Nectar member**
- Plus, get up to 22,000 Nectar points† as a thank you for taking out life insurance when you buy direct with us. The number of points awarded will depend on your monthly premium:
- If your monthly premium is under £8.50, we’ll give you 10,000 points, which could be worth £50
- If your monthly premium is £8.50-£20.00, we'll give you 16,000 points, which could be worth £80
- If your monthly premium is over £20.00, we'll give you 22,000 points, which could be worth £110
You'll receive your points within 60 days after you've paid 5 months' of premiums. To join Nectar, just download the app or register at nectar.com
Only choose a premium you can afford and the level of cover you require.
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 decreasing mortgage life insurance. Unlike level 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.
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 and 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.
What are Legal & General Wellbeing Support Services?
It’s a suite of telephone-based wellbeing support services provided by RedArc Assured Limited, offering expert help and advice from qualified nurses to you as the policy holder, your partner and any children living at home. Wellbeing support services are available to you from the day you take out cover for the duration of your policy. You don’t need to make a claim to access these services.
Legal & General Wellbeing Support Services explained
There are lots of reasons why you might want access to wellbeing support; maybe you’d like a friendly chat following a medical diagnosis, or advice on navigating healthcare systems. We want to support you as much as possible. Here are just some of the ways Legal & General Wellbeing Support Services can help.
Dealing with a serious illness
If you’ve been diagnosed with a serious illness or require support for a disability, your nurse will be there to offer wellbeing support. That includes helping you understand a diagnosis, advice on managing life with an illness or disability or return to work coaching.
We know how hard it is to lose a loved one, but you can count on the bereavement support to help you cope. Even if all you need is someone to listen, RedArc nurses will lend an ear.
Second medical opinion
For your own peace of mind following a diagnosis or course of treatment, RedArc can arrange face-to-face appointment with a UK-based specialist consultant.
Mental health support
If you’re having difficulties with your mental health and you’re not sure how to improve it, nurses can provide long-term support and guidance from a mental health nurse as well as counselling, therapy sessions and other forms of wellbeing support.
Looking after a sick or elderly loved one is challenging for anyone, and if you’re in that situation, you’ve got to think about your own health and wellbeing too. RedArc can offer emotional and practical support for carers whose wellbeing can be improved.
Help at home
It’s one thing to be discharged from hospital, but the recovery phase can also be a challenging time. RedArc nurses provide health and wellbeing advice over the phone while you’re at home.
Keeping your loved ones safe is the most important thing in the world, and RedArc can provide advice on how to support an elderly relative, whether they’re living independently or at a residential home.
Loneliness and isolation
We can all experience loneliness at different times in our lives – whether we’ve lost a loved one, relocated from our usual home or been diagnosed with an illness. No one should have to face these challenges alone, but wellbeing support provides a direct line to a supportive RedArc nurse.
No two people have exactly the same challenges, and Legal & General Wellbeing Support Services treats you as an individual. Specialist counselling caters for you and your needs.
Dietary and lifestyle guidance
If you’re seeking advice on healthy living – for example, if you’re at risk of a heart attack, stroke or diabetes – RedArc nurses can offer you the guidance you need.
Legal & General Wellbeing Support Services are available to customers purchasing a new decreasing life insurance policy via Sainsbury’s Bank on or after 13 January 2020.
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.