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Decreasing Life Insurance

Decreasing life insurance

Enjoy peace of mind with decreasing term life insurance. Also known as repayment mortgage life insurance or decreasing term life insurance, it is there to make sure your loved ones can pay off your mortgage repayment if you die.

Provided by Legal & General

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
  • 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

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.

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 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.

Bereavement support

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.

Carer 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.

Specialist counselling

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.

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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Frequently asked questions

Who is decreasing life insurance for?

Decreasing life insurance is designed to help protect a repayment mortgage. As you pay off more of your mortgage over time, your amount of cover reduces – roughly in line with it.

What happens at the end of a decreasing term life policy?

Cover will stop when the decreasing term life insurance policy ends. No further premiums will be payable after this. 
You’re covered from the policy start date until the policy expiry date, unless one of the following occurs first:

  • The amount of cover is paid out, or
  • The policy is cancelled by you or us.

Is decreasing life insurance cheaper than regular term?

As the amount of cover decreases over time, decreasing life insurance cover may work out cheaper than other regular term life insurance options. However, this isn’t always the case. Get a quote today to find out which life insurance option is best for you.

Can I buy decreasing life insurance online?

Yes, you can get decreasing life insurance online. Get a quote with Sainsbury’s Bank to find out how much your premium could be today. We’ll need a few details from you, including how much cover you need as well as how much you’re able to pay each month. Then we’ll do the rest. 

What qualifies as a critical illness?

Certain long-term illnesses and severe conditions are considered  critical illnesses. These can include cancer, heart attacks and strokes. The extent of the illnesses that are covered under critical illness insurance depends on your life insurance policy. See full L&G list.

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 22,000 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. We award points based on your monthly premium. You'll get:

  • 22,000 points (could be worth £110) if your monthly premium is over £20.00;
  • 16,000 points (could be worth £80) if your premium is £8.50 - £20.00 or
  • 10,000 points (could be worth £50) if your premium is under £8.50.

3. We’ll add the points to your Nectar account after you’ve paid 5 months’ premiums, within the following 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. This offer is governed by English law and Sainsbury’s Bank reserve the right to change or cancel it without notice. 

Legal & General Assurance Society Limited Registered in England and Wales No. 00166055. Registered office: One Coleman Street, London, EC2R 5AA. Legal & General Assurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority

**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.