Of course, by implication if you are enrolled in a debt management plan or considering this service, you do not have endless spare cash to spend on protection for your family. You'll be relieved to know that protection to cover your secured debt repayments, known as decreasing term life assurance, is one of the cheaper types of life insurance available in the market. The reason for this is that as you pay off more of the debt, the cover that you require decreases. The main feature of decreasing term life assurance is that you are covered within a certain time period, and there is no guarantee that you will die within this period.
When you are talking to assurance companies about the right decreasing term life insurance, it is a good idea to ask them to put the policy in trust so that it does not form part of your legal estate. This way, if you were to die once you had paid down your debt and built up assets, you would lessen the inheritance tax burden for your dependents. Many assurance providers will be able to include this within the costs of a decreasing term assurance policy, but there may be some costs if your financial affairs are complicated. If you are concerned about spending money on a longer-term - and therefore more expensive - form of life insurance, you could perhaps look at taking this out once you have paid off more of your debt and therefore have more disposable income available.