Why cover?
  • affects 1 in 4 women / 1 in 5 men before retirement
  • 94.1% of the critical illness claims are paid
  • protect yourself and your family if you get seriously ill
Why us?
  • get the cover that will pay when you need it
  • save up to 35%, cover from £5 a month
  • free, fast and without obligation quotes
Insurers: Aviva, Legal & General, Liverpool Victoria, Scottish Widows, Vitality, Zurich

Decreasing Critical Illness insurance policy - what is it all about?

This type of product is used by those who have a mortgage or a high-ticket loan.

Decreasing Critical Illness to Protect Your Mortgage

When you apply for a mortgage, you will be required to get decreasing term coverage. However, if you really want to make sure that your mortgage is paid, even if you get critically ill, then you can consider adding a decreasing critical illness insurance cover. This can protect your family in case you become critically ill or are diagnosed with a serious illness while the loan is still active but you cannot work and pay off current debts.

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Also called a mortgage critical illness cover, the decreasing critical illness cover (as the name suggests) is designed to decrease the level of cover as you pay off your mortgage. When you are diagnosed with a critical illness, the insurance cover will kick in and you can use the proceeds to pay off your mortgage.

This is cover when you need it most – while you need to spend considerable amounts of money in treatments and also have to cover for everyday expenses.

As a responsible borrower, it is important for you to explore getting a critical illness insurance policy to ensure that you can cover your debt even when you can’t earn an income.

Read more about Protecting Your Mortgage with Life Insurance and Critical Illness Insurance.

Decreasing Critical Illness as Part of Your Health Protection Plan

You can also consider getting a decreasing critical illness plan to provide a level of protection for you and your family in case you become seriously ill.

Here are some factors that will help you decide if this cover is a good option for you:

  • Budget.

    The question is, can you afford to pay for the additional cover? You have to weigh the risks versus the premiums you will have to pay. If you deem that with the risks in your situation, a critical illness insurance policy is necessary, then you can look at how you can cut down on other items just to be able to pay for your premiums.

  • Family situation.

    It really depends on whether you are the main provider or if you are a dual-income family. With the former, you cannot afford not to have the coverage since your family depends on you for the money to pay for bills, as well as the mortgage. If both spouses are earning, it may be a lesser risk, but it will still be useful to consider getting the coverage as an additional safety net.

  • The type of mortgage or debt the insurance should cover.

    You should look if your mortgage is an interest only mortgage or a reducing mortgage.

  • Family needs.

    Over time, your role as a breadwinner will fade as your children become financially independent. Decreasing critical illness may be a budget-friendly option for this. As your family’s needs decrease, your need to ensure your financial stability may also decrease. Of course, you also have to take into consideration the rising cost of medical treatment in the future.

Pros and Cons of the Decreasing Policy


  • Cheaper than level critical illness cover
  • Enables you to adjust to the changing needs of your family
  • For critical illness cover bought for mortgage-protection purposes, you can also avail of mortgage payment guarantee, where the mortgage is fully paid-up by the cover upon diagnosis of a critical illness. (Terms and conditions apply.)


  • The decreasing amount of cover may not be enough to cover the increasing cost of being treated for a critical illness.
  • This cover is only for critical illness. You will also need a life insurance cover to protect your mortgage.

Last updated on: 18.1.2013

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