What is decreasing term life insurance?
Learn more about decreasing term life insurance - also called Mortgage Protection. And find out what your options are with Tesco Life Insurance.
Published: 4 February 2026
What is life insurance?
Life insurance helps to give your loved ones some financial security if you’re no longer around. It pays out a cash lump sum if:
- You die during the length of the policy, orYou die during the length of the policy, or
- You become terminally ill and aren’t expected to live more than a yearYou become terminally ill and aren’t expected to live more than a year
They can use this money to pay off the mortgage or cover the cost of living expenses. Find out more about the basics of life insurance here - What is life insurance?
Tesco offers two types of life insurance, provided by Aviva:
- Level term, also known as Family ProtectionLevel term, also known as Family Protection
- Decreasing term, also known as Mortgage ProtectionDecreasing term, also known as Mortgage Protection
What is decreasing term life insurance?
Decreasing term life insurance is designed with mortgages in mind. That’s why we also call it Mortgage Protection.
The value of the policy goes down gradually over time, as the outstanding balance on your mortgage also goes down. But the amount you pay each month stays the same.
You might decide to get decreasing term life insurance when you buy a house, especially with a partner. This is so they’ll still be able to repay the mortgage should the worst happen.
If you’re not sure whether you need life insurance before getting a mortgage, we’re here to help - Do you need life insurance for a mortgage?
How does decreasing term life insurance work?
With decreasing term life insurance, your monthly premiums stay the same throughout the policy. So, if you’re paying £15 a month now, you’ll still be paying £15 at the end.
But your cover reduces over time until it reaches £0. This means the payout your family might get if you die also reduces. This might make it cheaper than other types of life insurance.
However, Mortgage Protection will only help you pay off a repayment mortgage. If you have an interest-only mortgage, it might not be the right cover for you.
At Tesco, you can choose the length of the cover (known as the policy term) from 5 to 50 years. You can also choose a single or joint policy. And cover of up to £5million.
How much decreasing term life insurance do I need?
To work out how much cover you need, think about these questions:
- Do you have a repayment or interest-only mortgage?Do you have a repayment or interest-only mortgage?
- How much do you still owe on your mortgage?How much do you still owe on your mortgage?
- How many years do you have left to pay off your mortgage?How many years do you have left to pay off your mortgage?
Your cover amount and policy length should match the amount you owe on your mortgage and how long you’ve got left to repay it. This is so your family will have enough to pay off the remaining balance if you die or become terminally ill during the policy term.
Need more help to work out how much cover you need? Check out our guide - How much life insurance do I need?
Level term vs decreasing term life insurance
Life insurance guides
The main difference between level term and decreasing term life insurance is the payout your loved ones might get. With level term, this stays the same throughout the policy. With decreasing term, the payout goes down over time.
With decreasing term, the amount you pay each month is usually lower than level term. This is because the amount left to pay on your mortgage also drops over time. And if you have a smaller mortgage, you need less cover in the first place.
Remember, your loved ones will only get the payout if their claim is successful - no matter which policy you have.
What kind of life insurance should I get?
If you’re wondering whether to get level or decreasing term life insurance, think about these things:
- The payout you might need - if you need the lump sum payout to stay at a fixed amount, consider level term life insurance. If you only need enough cover to pay off what’s left on your mortgage or another long-term loan, decreasing term life insurance might be more suitable for you.The payout you might need - if you need the lump sum payout to stay at a fixed amount, consider level term life insurance. If you only need enough cover to pay off what’s left on your mortgage or another long-term loan, decreasing term life insurance might be more suitable for you.
- The monthly premiums you can afford - you usually pay the same amount each month with both policy types. However, decreasing term life insurance is usually cheaper as the payout reduces over time. With level term, premiums tend to be more expensive as you’ll get a bigger payout. You can also choose to increase your monthly premiums in line with inflation, so the amount you pay will go up.The monthly premiums you can afford - you usually pay the same amount each month with both policy types. However, decreasing term life insurance is usually cheaper as the payout reduces over time. With level term, premiums tend to be more expensive as you’ll get a bigger payout. You can also choose to increase your monthly premiums in line with inflation, so the amount you pay will go up.
- The type of mortgage you have - if you have an interest-only mortgage, decreasing term life insurance won’t cover this. It’s only suitable for repayment mortgages. Level term life insurance can cover an interest-only mortgage, as the lump sum doesn’t change. So, bear this in mind when choosing what type to get.The type of mortgage you have - if you have an interest-only mortgage, decreasing term life insurance won’t cover this. It’s only suitable for repayment mortgages. Level term life insurance can cover an interest-only mortgage, as the lump sum doesn’t change. So, bear this in mind when choosing what type to get.
- If you have other expenses to pay - decreasing term is only suitable for mortgage repayments or other long-term debts that go down over time. If your family will need more support to cover things like living costs, childcare and education, level term will provide more flexibility. This is because the lump sum can be used for a wider range of expenses.If you have other expenses to pay - decreasing term is only suitable for mortgage repayments or other long-term debts that go down over time. If your family will need more support to cover things like living costs, childcare and education, level term will provide more flexibility. This is because the lump sum can be used for a wider range of expenses.
Can I have both level and decreasing term life insurance?
Yes, you can have more than one life insurance policy at the same time. So, you might take out decreasing term cover to make sure your mortgage is paid off. And you might take out level term life insurance to support your family with other expenses.
Find out more about having multiple policies with our guide - Can you have more than one life insurance policy?
Why get Tesco Life Insurance?
At Tesco Insurance, we want to help you with the things that matter most. That’s why Tesco Life Insurance comes with a Big Win and lots of Little Helps.
- Clubcard Prices - Get an exclusive discount on Tesco Life Insurance with your Clubcard.Clubcard Prices - Get an exclusive discount on Tesco Life Insurance with your Clubcard.
- Your Big Win - Get a welcome gift after you've paid 6 months' premiums. Available on policies with a 3‑year minimum term. T&Cs apply.Your Big Win - Get a welcome gift after you've paid 6 months' premiums. Available on policies with a 3‑year minimum term. T&Cs apply.
- Your Little Helps - Get a full year of coupons in your Tesco grocery app to help you shop at Tesco. Available on policies with a 3‑year minimum term, Clubcard app required and must be opted in to Tesco marketing. T&Cs apply.Your Little Helps - Get a full year of coupons in your Tesco grocery app to help you shop at Tesco. Available on policies with a 3‑year minimum term, Clubcard app required and must be opted in to Tesco marketing. T&Cs apply.
As well as your Tesco benefits, you’ll also get access to health and wellbeing services with the Aviva DigiCare+ app, provided by Square Health and other selected partners.
Tesco Life Insurance is provided and administered by Aviva, who have a 5-star rating from Defaqto for life insurance and pay out on 98.8% of claims.
Important information
About Tesco Life Insurance
Tesco Life Insurance is arranged, administered and underwritten by Aviva Life & Pensions UK Limited.
Tesco Personal Finance Ltd acts as an introducer to Aviva Life & Pensions UK Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Member of the Association of British Insurers. Firm Reference Number 185896.
Aviva Life & Pensions UK Limited. Registered in England & Wales No. 3253947. Registered Office: Aviva, Wellington Row, York, YO90 1WR. Tesco Personal Finance Ltd and Aviva Life & Pensions UK Limited. are not part of the same corporate group.
About Tesco Insurance
Tesco Insurance is a trading name of Tesco Personal Finance Ltd, Registered Office: 2 South Gyle Crescent, Edinburgh, EH12 9FQ (registered in Scotland, no SC173199) which is authorised and regulated by the Financial Conduct Authority (register no. 186022).
Aviva DigiCare+ app
With the Aviva DigiCare+ app, you can start using a range of health and wellbeing services when you take out your policy.
Members of your family can use it too, as long as they're eligible.
The Aviva DigiCare+ app is provided by Square Health. The services are provided by Square Health and other selected partners.
You'll find full details about the services in the app, along with the terms and conditions, residency restrictions and privacy policy.
Aviva DigiCare+ is a non-contractual benefit that could be changed or withdrawn by Aviva at any time. So, it won't appear in any contract you've signed, or in any terms and conditions.
Life Insurance policy booklets
Please check the policy documents to make sure the cover you’ve chosen meets your needs.
The policy booklet and product information documents tell you about the benefits, limitations and exclusions that’ll apply to your cover.
Tesco Life Insurance is provided, administered and underwritten by Aviva Life & Pensions UK Limited.
Aviva have a 5-star rating for life insurance from Defaqto. And they pay out on 98.8% of life insurance claims*.
*Aviva UK individual claims report 2025, based on claims paid in 2024.
Learn more about Life Insurance
Find the right cover to give financial support to your family after you’ve gone. Tesco Life Insurance comes with Clubcard Prices, some great Tesco shopping benefits and Aviva DigiCare+.