One of the first decisions you will make after deciding that you need/want life insurance is weather the plan will be a LEVEL cover or DECREASING cover plan, and this is something that can only be decided upon by looking at your reasons for the cover.
DECREASING – The benefit amounts starts at the selected amount, i.e. £25,000 and each year of the policy runs, the amount decreases. These policies are normally purchase alongside a mortgage so that as the mortgage balance decreases each year – So does the life cover amount. This does not mean that the monthly premium will decrease.
LEVEL – The benefit amount maintains the same throughout the life time of the policy. You can Unit Link the policy which means that the policy will rise with inflation.