Level and decreasing cover explained

Family life insurance or mortgage life insurance?

When you apply for Saga Term Life Insurance you have the choice between life insurance, often called family life insurance, or mortgage life insurance

  • A family life insurance policy offers level cover only, where the amount you are covered for stays the same throughout the policy term (unless you alter your policy).
  • Mortgage life insurance gives you the option of level or decreasing cover. Decreasing cover means the amount you are covered for decreases over the term of the policy, roughly in line with a repayment mortgage.
  • If you choose a mortgage life insurance policy you will receive some additional benefits (see additional benefits section below)
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Term Life Insurance

Saga Term Life Insurance, provided by Legal & General, is designed for people aged 50 and over to provide cover should you die during the term of the policy.

Level and decreasing cover explained

With family life insurance the amount of cover always stays the same throughout the length of the policy, unless you choose to make changes to your policy. This can be used to leave your family a lump sum to help them cope financially when you die and no longer be around to support them.

With mortgage life insurance you can choose whether you want your cover amount to remain the same (mortgage life insurance) or decrease over the full length of the policy (mortgage decreasing life insurance).

  • Mortgage life insurance is designed to help cover an interest only mortgage
  • Mortgage decreasing life insurance is designed to help cover a repayment mortgage  


The graph below illustrates the amount of cover the two different mortgage life insurance policy options would provide over the same period, based on £100,000 over 15 years. This is an illustration only and the amount of cover will depend on your individual circumstances.

 Level Cover vs Decreasing Cover Comparison

One benefit of mortgage decreasing life insurance is that the premiums can be cheaper than with regular level life insurance because the amount of cover decreases throughout the policy term, roughly in line with a repayment mortgage. With all policies your premiums will stay the same for the entire length of the policy, unless you alter your policy, so you can budget with confidence.

Additional benefits

The following benefits are included with mortgage life insurance policies for no extra cost:

  • SmoothMove a 24-hour moving day emergency rescue service, offering services such as car recovery, hotel accommodation and legal advice. Provided by Inter Partner Assistance. Terms and conditions apply.
  • Free life cover between exchange of contracts and completion of your property purchase. Terms and conditions apply.

Saga Personal Finance is a registered trading name of Acromas Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority. Acromas Financial Services Limited is registered in England and Wales (Company No 3023493). Registered Office: Enbrook Park, Sandgate, Folkestone, Kent CT20 3SE.