I wanted a policy that protects my family in case I get injured or get ill (incapacitated) and also in case I die. They suggested a combination of Income Protection Insurance and Life Insurance.
I'm happy with the Income Protection Insurance, but as for Life Insurance, I have to set a constant lump-sum which will be paid out regardless of when I die. Instead, I would much rather have a policy where the amount will decrease as I survive longer. I.e., if I was to die at 35, I would want a large amount to be paid out, but if I was to die at 55, then my family won't need that much.
The reason I prefer such scheme is because I assume such scheme would be cheaper than conventional Life Insurance as I'm basically getting rid of excessive protection. The ideal policy would be a income guarantee scheme that covers death.
Are such policies available in UK? Also, is it correct that such scheme are generally cheaper than conventional Life Insurances that pay out a fixed lump-sum?