What is mortgage life insurance?

If your main concern is to make sure your loved ones can pay off the mortgage if you unexpectedly pass away, mortgage life insurance could suit you. As the amount you owe on your mortgage reduces over time, the payout decreases too. You may have also seen this referred to as 'decreasing term insurance'. It’s a great way to help ensure your family home is protected.

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We work with leading UK insurers to save you money and bring you cover you can rely on.

Why you need mortgage life insurance

If you were to pass away while paying off a large loan like a mortgage, it can put a lot of financial pressure on your loved ones. This kind of stress can be avoided by taking out mortgage life insurance. Not only does it help ensure your family home is protected, but it can make a tough time for your family easier to manage. 

What do you need to get a quote?

With just a few details, you can get the right quote for you.


Health details

Insurers require information about you and your family's health and medical history, including any pre-existing medical conditions. 


Lifestyle information

Insurers need information about your lifestyle choices, including whether you smoke or drink.


Age and occupation

Your age and occupation can affect how much you pay. The older you are, the more expensive it's likely to be. 


Partner's details

If you're applying for joint cover, you'll also need to provide your partner's health details, lifestyle information and occupation. 

How long will it take?

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How to calculate the cost of mortgage life insurance

The cost of mortgage life insurance is linked to how much cover you might need. To figure that out, you should look at your outstanding financial commitments. 

If you have a £350,000 mortgage, you could look for cover around that amount. Your insurer will also need to know how long you would like to be covered for, your age and answers to some health and lifestyle questions  before they can calculate your monthly payments.

Frequently asked questions

  • Do I need life insurance for a mortgage?

    Some mortgage providers insist on you taking out life insurance, some don't. However, it makes sense to have some financial protection in place when getting a mortgage, since your family might be unable to pay off the debt if you pass away unexpectedly.

  • How does mortgage life insurance work?

    With mortgage life insurance you select a large payout amount that could be in line with the loan you want to cover at the beginning of the policy. You also agree how much your monthly payments will be and for how long you are covered (e.g. how long until your mortgage is paid off). Over the duration of the policy the benefit amount will decrease. If you pass away at any stage during this term your beneficiaries will receive that benefit amount. 

  • Is mortgage life insurance just for mortgages?

    No, this type of life insurance is designed for anyone with any large financial commitments. This can include a mortgage but it can also include things like large loans. 

  • Can I get mortgage life insurance if I have a life insurance policy?

    Yes, you can have more than one life insurance policy, however some insurers may set individual limits on the amount of cover you can have. It is important to make sure you can afford the monthly payments for all your policies.

  • Does my life insurance cover my mortgage?

    It depends how much your payout amount is. If it exceeds the amount left on your mortgage, then it can cover your mortgage. This will depend on what you agree when you apply for your life insurance.  


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