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Cromwell Associates

Life & Protection

Level, decreasing and whole-of-life cover explained

Three shapes of life cover, what each is designed for, and where each tends to fall short.

Cromwell Associates editorial team · 5 min read · Reviewed August 2026

Level term

The sum assured stays the same across a fixed term. Straightforward and predictable, it suits a defined lump-sum need — but a fixed figure loses real value to inflation over twenty or thirty years.

Decreasing term

Cover reduces broadly in line with a repayment mortgage, which usually makes it cheaper. It matches a falling debt well and matches a family's wider needs less well, since those do not conveniently reduce each year.

Whole of life

Intended to remain in place for life rather than for a term. It costs more because a claim is expected at some point, and it is most often considered where a liability does not disappear with age.

Reviewable plans can become materially more expensive at review, so the structure matters as much as the initial premium.

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