When taking out a Business Protection Insurance quote, you may see the option for ‘level or decreasing’ cover. Most types of Business Protection Insurance offer level cover, but Business Loan Insurance can be level or decreasing.
Decreasing Cover
Is when the amount of cover you have decreases over time because the loan amount also reduces as you make payments. This is a more common and cheaper option because the risk for the insurer lessens with the amount of cover needed.
Level Cover
With Level Cover the payout amount doesn’t change. It’s the less common choice because it protects interest-only commercial mortgages.