Is Level or Decreasing Life Insurance Cover Right for You

If you have life insurance, then you won’t have to wonder what will happen to your family after you die. Your policy ensures they’ll be provided for. But there are so many different kinds of coverage — whole vs term, level vs decreasing.

Dental & Medical Financial Services have been assisting doctors with their financial planning for over 30 years. Learn more about whether level or decreasing life insurance cover is right for you.

This does not constitute advice and advice should be sought in all instances before acting on it.
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Level term vs decreasing term life insurance

Level term and decreasing term life insurance are two different options to consider when looking at life insurance cover. Each has its own pros and cons, and they will be better suited for specific circumstances.

Level term life insurance offers consistency in premiums and payouts, with the amount paid out when you make a claim remaining the same throughout the term of the policy. This type of cover is best for those who want to ensure their dependents receive a fixed sum to cover expenses and financial commitments after they pass. It’s important to remember that your payout does not increase with inflation, which can affect the buying power of the sum in the future. Level cover is ideal for those looking for stable protection for their loved ones without the worry of changing payout amounts.
Decreasing term life insurance, on the other hand, provides a decreasing payout value over the term of the policy, making it more affordable compared to level cover. This type of insurance is commonly used to cover decreasing debts, such as a capital and interest repayment mortgages. The payout value reduces over time and eventually reaches zero at the end of the term. Decreasing cover is a cost-effective option for those looking to cover a specific debt that decreases over time.

When you’re choosing a life insurance policy, it’s essential to consider your specific financial situation and what you would need to provide for after you die. Factors such as lifestyle, age, health, and financial commitments can also affect the choice you make.

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Working with a professional

If you’re unsure about which type of life insurance is best for you, the financial experts at Dental & Medical Financial Services can help. We can provide personalised advice based on your individual circumstances to ensure that you have the right cover to protect your loved ones financially. Contact Dental & Medical Financial Services today to explore your life insurance options and secure peace of mind for the future.

Check our Protection Quote Tool for accurate quotes for level term, mortgage protection, whole of life and income protection