If you have a Life Insurance Policy with decreasing cover, the cover amount decreases over time, broadly in line with the repayment mortgage or long-term loan that you’re repaying. Your premiums stay the same during the term of the policy, unless you make changes to the cover. Decreasing cover usually costs less than level cover. The policy will pay out if you die, or are diagnosed with a terminal illness before the last 12 months of the policy term and you aren’t expected to live longer than 12 months. The policy only pays out once and has no cash value at any time.