Term Life Insurance Cost: Level and Decreasing Cover

The cost of term life insurance reflects the amount, duration and type of protection, as well as the person insured. Level and decreasing cover should be compared by what they are designed to do.

Match the cover to the borrowing

Level cover may suit an interest-only mortgage or a fixed family benefit. Decreasing cover is often considered for repayment borrowing, but its reduction schedule and interest assumptions need checking against the loan. It is not simply a level policy at a discounted price.

Why old premium tables are unreliable

Prices depend on a complete set of assumptions and can change over time. A table without current evidence, dates and equivalent benefit details can mislead. Obtain fresh like-for-like quotations rather than relying on an old “from” figure.

What changes the premium?

Premiums depend on age, health, nicotine use, benefit amount, policy type, duration and optional benefits. There is no single price that represents all UK applicants. Compare the same amount and term, premium basis and policy features. A higher benefit or longer term can increase cost, but there is no universal rate per £1,000 of cover or guaranteed cheapest insurer.

How much protection should you price?

Add outstanding borrowing and the family support needed over time, then allow for existing policies, accessible savings and reliable employer benefits. Include the cost of replacing unpaid childcare or caring work. Consider affordability and how long the need will last, rather than assuming a salary multiple suits everyone.

Useful next steps

Read our main cost guide, the policy comparison checklist and our cover amount guide.

Compare your options

You can compare life insurance quotes online and ask our advisers for help with the next step. Initial quotations are subject to the insurer assessing the application. Cover begins only when the insurer confirms the policy is in force; completing a form or receiving a quote does not start cover.

Updated October 2026. General information, not a personal recommendation or a quotation. Eligibility, exclusions, premiums and tax treatment depend on the policy and individual circumstances. Discount Life Cover is a trading style of My Key Finance Ltd, authorised and regulated by the FCA, FRN 628996.

Further information: MoneyHelper: life insurance.