Protect Your Home with Mortgage Life Insurance: Safeguard Your Biggest Investment

What is mortgage life insurance?

Decreasing mortgage life insurance is designed to pay off your mortgage if you die. Unlike regular life insurance, the cover decreases over time, making it cheaper and tailored to a repayment mortgage. If you pass away, the pay out can be used to cover what’s left on your mortgage.

Is the cover linked to my mortgage?

No, the purpose of this policy is to cover the balance remaining on a repayment mortgage. Any money paid out would not go directly to a lender, instead the claim would form part of your estate where it can be used to pay off any remaining mortgage.

Your mortgage life insurance premiums are cheaper with us

Compare providers	Moneyworld	Money Supermarket	Compare the Market	Go Compare	Confused.com
30 year old non-smoker	4.37	5.99	5.98	6.39	5.78
30 year old smoker	7.04	9.61	9.62	10.31	9.48
2 x 45 year old non-smokers	23.24	31.20	31.20	33.38	30.69

Monthly premiums for £250,000 decreasing mortgage life insurance over 25 years.
Assumes person is in good health. Correct at 24th April 2024.

Mortgage life insurance FAQs

You can have any amount but normally you would match the amount of cover to your remaining mortgage. If you choose to have more cover and a claim was made you would end up with with money left over after the debt has been settled.

Normally, your mortgage life insurance should match the term of your mortgage. This ensures that your cover aligns with your outstanding mortgage balance and will pay off the remaining debt if something happens to you during the mortgage term.

Although life insurance isn’t compulsory when obtaining a mortgage, it’s a valuable option for people who:

Have dependents counting on their financial support
Are required by the mortgage lender
Are seeking piece of mind

No, mortgage life insurance does not have a cash-in value. It is designed solely to provide cover for death or diagnosis of a critical illness (if included).

The cost of mortgage life insurance will vary depending on a number of factors, including:

Age: Generally, the younger you are when you take out cover, the lower your premiums will be. This is because younger people are typically considered lower risk by insurance companies.
Health: Your health and any pre-existing medical conditions can impact the cost of insurance. People in good health typically qualify for ‘standard premiums’, while those with health issues may pay higher rates. The premiums quoted on our website assume you’re in good health, but if you do have a medical condition this shouldn’t stop you applying for a policy. The insurer may increase the price and you can decide if this acceptable.

Bear in mind that our prices are considerably lower than other comparison services and cheaper than buying directly from the provider. This is because we give up the commission normally payable to reduce your premiums.

Yes, critical illness cover can be included. If you choose this, your policy will pay out upon death or diagnosis of a critical illness.

The critical illnesses covered vary from company to company although all providers tend to cover a similar range of conditions. You can find the full list of illnesses covered in the insurance providers key facts, this document is available as you progress with your quote.

Your critical illness cover will usually reduce at the same rate as your life insurance. Please check your personalised illustration to check details of your cover, this is available as you progress your quote with us.