Decreasing term life insurance calculator
Decreasing Term Life Insurance Calculator
Try our decreasing term life insurance calculator below and find out how much cover you need. Then get a quote!
Life Insurance Cover
Our new life insurance calculator will help you work out just how much insurance you need, taking into account your current mortgage, debts, any life insurance and death-in-service benefits.
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The amount you still owe on your mortgage is the number you are after. Take a look at your most recent mortgage statement to find out what the outstanding balance is.
Think about how much each child might need per year to make sure they are looked after until they are independent. This could be when they are 18 or later if they go to university. You could include university fees in this figure.
Think about anything else that would need to be dealt with if you died. This could include funeral expenses or other unforeseen financial commitments.
How much do you owe on other debts?
Think about the total amount of any loans you have taken out, for example if you have more than one loan, then provide the combined settlement figure.
Think about the total amount owed on credit cards, for example if you have more than one card, you will need to provide the combined balance owing.
Think about any other repayments that come out of your account each month that are not loans or credit cards. Repayments like store card balances, car loans and items bought on hire purchase, for example.
How much other life cover do you have?
If you have other life cover in place, you could reduce how much life insurance you need. We will then subtract this from the total.
Based on your numbers, you should look for a life insurance policy of at least
How much life insurance do I need?
Our decreasing term life insurance calculator is the easiest way to estimate how much cover you may need based on your current situation. Simply enter your details in the calculator below and click "Calculate".
Remember, this shouldn't be treated as advice. You will have to decide the level of cover and the type of policy that is right for your needs.
Why Use A Life Insurance Calculator?
A decreasing term life insurance calculator can be a valuable tool when considering purchasing a decreasing term assurance policy. This type of policy provides a death benefit payout that decreases over time, typically in line with the remaining balance of a mortgage or other debts.
When using a decreasing term life insurance payout calculator, you can input your desired coverage amount, the length of the term, and the interest rate, and it will provide you with an estimate of your monthly premiums and the death benefit payout amount. This can be particularly helpful when comparing different decreasing term insurance policies and determining which one may be the most affordable and suitable for your needs.
Compared to level term life insurance, where the death benefit payout remains the same throughout the policy term, decreasing term insurance policies may be more cost-effective as the payout decreases over time. This is because the risk to the insurance company decreases as the outstanding debt decreases, and thus the premiums are lower.
It's important to note that while decreasing term insurance may be a good option for those with significant debts to pay off, it may not be the best choice for everyone. It's important to consider your individual financial situation and needs before deciding on a decreasing term life policy or any other type of term insurance. A qualified financial advisor or insurance agent can help you make an informed decision.
Life insurance explained
Life insurance can be a great way to help protect your family financially, should the worst happen. It is designed to pay out a cash sum if you die during the length of the policy, and can be used to help pay the mortgage or help protect the family's lifestyle and everyday living expenses. Our life insurance calculator helps you assess what level of cover would suit you. For more information on life insurance why not take a look at our ultimate life insurance guide
How much is life insurance?
Your life insurance premiums depend on your own needs and circumstances. The information that we consider when calculating your premiums include:
- your age
- if the policy is in joint or single names
- your health and lifestyle
- the amount of cover you need
- the length of the policy
Do I need life insurance?
If other people depend on you financially, then life insurance is definitely something you should consider. Anyone may have a need for life cover; for example, those with children, a mortgage to pay, or a partner, parent or relative who depends on your income.
To help you decide how much life insurance you need, you could consider the following:
- How much would your family need to maintain their current lifestyles?
- If you want to specifically protect a mortgage, think about your mortgage amount.
- If you have children, how much would they need to cover childcare costs or university fees?
Please remember that life insurance is not a savings or investment product and has no cash value unless a valid claim is made.
Discount Life Insurance…Why Use Us
We are an online advice service and as such have little overheads which enables us to give away more commission enabling us to me extremely competitive on price.
Having said all this, life insurance is not always about price and there are differences in the types of cover offered by providers. So we also provide an “advised sale” which means that we take on responsibility to make sure the policy you take is the right one and the most suitable for your circumstances.