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Life insurance for a mortgage

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Protect your home to ensure your family can keep it if you pass away

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What is mortgage life insurance?

Mortgage life insurance is a type of life insurance which is put in place when you take out a mortgage. It is usually set to clear the mortgage as a minimum if you pass away so that your family can keep the house.


Mortgage protection life insurance is commonly decreasing term life insurance which means that you take the cover out for the mortgage balance and the amount falls as your mortgage falls.


You can still look at a level policy where the payout amount stays the same for the life of the mortgage. As you pay off the mortgage, this will create a surplus for you to leave for other expenses.


Do you need life insurance for a mortgage?

If you want your family to keep the house if you pass away then you should put life insurance for the mortgage in place. A lot of families wouldn’t be able to afford the mortgage if one of the incomes is lost from the household. Mortgage protection insurance is life insurance to pay off the mortgage so your family don’t have to worry financially.


Mortgage protection insurance can be put in place if you would like someone to inherit the house, even if they don’t currently live with you. Mortgage protection life insurance can be used to pay off the mortgage so you can leave someone the house debt free. This protects your hard earned deposit and leaves an asset for your family.

Life Insurance vs Mortgage Protection

Life insurance for a mortgage is often referred to as mortgage protection. The amount is often targeted around covering a mortgage but otherwise the cover is the same. When looking at protecting your mortgage it is also important to consider illness cover which will protect you while you are alive and living in the house.


How much life insurance do I need for my mortgage?

Mortgage protection insurance usually looks to clear your mortgage balance if you pass away. You can also factor in other expenses such as funds to raise children, household bills or anything else that you would like to leave.


What is the average cost of life insurance per month UK?

Life insurance can cost be from £5 per month. The cost of your life insurance varies based on things such as your age when you take out the policy, your health, the amount of cover and how long you would like the cover.


What is the average life insurance payout UK?

In 2022 a total of £3,907,342 was paid out in life insurance claims in the UK with the average claim at £73,578***

Why should I take life insurance out?

Commonly people look at their expenses when considering whether they need life insurance in place. Things to consider when thinking about taking out life insurance;


Do You Have Anyone Financially Dependent?

If you have children who are financially dependant or grandchildren, you should take this in to consideration.

Even if they are not financially dependant on a day to day basis. Consider if you would like to leave them some inheritance or financial support

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Mortgage or Rent


Could your family afford to pay these monthly costs including all of your bills without your income. Even if you live alone, you need to consider how long your relatives might need to sort out your belongings or sell a house.

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The Cost of Your


The average cost of dying in the UK was £9200 in 2022*. At a time when your family are grieving, you don’t want them to be worrying about this expense.

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With the level of people’s savings dropping as the cost of living goes up, a life insurance policy can be a way of leaving your family a lump sum to give them some financial stability for their future.

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Outstanding Debts In Your Name

As the cost of living rises and there is a lot of reliance on debts, it is important to ensure you are not leaving your family with debts.

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Inheritance Tax

If you have built up your estate to leave your family anything from money to houses, they will be liable to inheritance tax on this over the thresholds. An insurance policy to cover the inheritance tax can ensure your hard work is left to your family debt free.

  • Can you take out life insurance at any age?
    Yes, life insurance can be taken from the age of 18 up until 85 years old. The cost of life insurance does increase with age as well though as you are more likely to claim on a policy as you get older. You cannot take out life insurance if you have been diagnosed with something that is likely to lead to your death. There is a medical questionnaire which is checked against your medical records when you make a claim.
  • How much life insurance do I need to protect my family?
    You should factor in things such as; The cost of raising any children you have. Your funeral costs and the cost of dying – the average funeral cost is £3953 with the average cost of dying at £9200 which includes things such as a wake, professional costs, catering and flowers **** Any debts you have – cars, loans, credit cards, overdrafts, hire purchases. Inheritance tax – if you are leaving more than £325,000 in your estate there will be inheritance tax payable if it is not all left to your spouse. You should seek tax advice to find out the amount that is likely to be payable for any assets you would like to leave. Your income – the household will be reliant on your income so it is common to leave at least 2 years of your salary for time to adapt. Living expenses for your family or partner – mortgage/rent, utility bills, quality of life costs.
  • Should I have life insurance if I own a house?
    If you want to protect your deposit and leave your house to someone you should have adequate life insurance in place. Most joint mortgages rely on both of your incomes, so if one of you pass away the other person would have to sell the house if they cannot take the full mortgage out in their own name.
  • Why speak to insurealife for your life insurance quote?
    We have a panel of insurers so we can ensure you have the best cover in place and also the best value for money. We only work with reputable insurers so if you family need to claim on the policy you can rest easy that they will get a pay out quickly and smoothly.
  • Can I change my plan in the future?
    Life insurance plans are flexible to your requirements. You might want to increase the cover in the future if you have more financial responsibility or have a nice lottery win that means you want to cancel the policy. We believe that life insurance should be flexible with your life so we offer a free review at any time during the life of your policy.
  • Can I take out life insurance while pregnant?
    Yes, this is a prime time to look at taking out life insurance, as you are soon to have someone financially dependent on you. You can add critical illness cover which covers some pregnancy complications and also your children from birth as well.


Paulton House, Old Mills



BS39 7SX

*The times 25/07/23

** Legal and General claims statistics 2022

*** Royal London claims statistics 2022

**** Sunlife cost of dying report 2023

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