Decreasing life insurance

MakingUpGround

Hi, am looking at our insurances. We are covered but I want to extend terms. may have to get new policies. 
With decreasing life insurance, does it decrease by reduction of total/number of years cover per year? 
For example, a 100k policy over 10 years would go down by 10k per year? 

dunstonh

We are covered but I want to extend terms. may have to get new policies. 

Term assurances are cast in stone unless you have a guaranteed insurability option and are at a point you can trigger it.   In the vast majority of cases, people go with new policies unless their health prevents it.

With decreasing life insurance, does it decrease by reduction of total/number of years cover per year? 

No.   It will decline based on a percentage rate.   So, a curve, just like the mortgage.    Pulling figures out of a hat, that example of yours could be a decrease of £3000 in year one and £15,000 in year ten.

Weighty1

MakingUpGround said:

Hi, am looking at our insurances. We are covered but I want to extend terms. may have to get new policies. 
With decreasing life insurance, does it decrease by reduction of total/number of years cover per year? 
For example, a 100k policy over 10 years would go down by 10k per year? 

There would be an "assumed interest rate" on the policy, often 8%.  This means the cover reduces in line with how a mortgage would decrease IF the interest rate was 8%.  As Dunstonh states above, this means it decreases quite slowly in the early years and much more quickly in the later years.