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Mortgage Life Insurance

With mortgage life insurance, you can rest easy knowing that your family will always have a roof over their heads. Having been proud health and mortgage protection partners for Rightmove, we can help you find the right coverage for your requirements!

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What Is Mortgage Life Insurance?

Mortgage life insurance is one way to ensure that your loved ones can continue to live in their home once you’re no longer around. It is a type of term life insurance that will pay off your mortgage balance should you die. Unlike whole of life insurance, your term length will match the term of your mortgage. 

When talking with people considering mortgage life insurance, we have to put forward worst-case scenarios. Namely, how would your family cope if you or your partner passed away? Would you be able to continue meeting your mortgage payments if you rely on two incomes?

That’s where mortgage life insurance can be a crucial lifeline, making an awful time that little bit easier.

How Does Mortgage Life Insurance Work?

STEP 1
Complete form
STEP 2
Speak to us about your needs
STEP 3
We’ll search the market
STEP 4
We recommend the best product to suit your needs
STEP 5
Tell us when you want it to start!

As a form of term life insurance, your individual policy is designed to match the timeframe of your mortgage. For example, if you’ve taken out a 25-year mortgage, you can expect your policy to be of similar length.

When it comes to finding life insurance to cover mortgages, you should bear in mind that there are two different types of term insurance: level term insurance and decreasing life insurance.

Level Term Life Insurance

With level term life insurance, your monthly premiums and the lump sum payout remain the same throughout the policy’s term. This means that you can budget for your insurance payments and avoid any unexpected changes in cost. However, level term life insurance premiums are generally higher than those for decreasing term life insurance. Level term life insurance tends to be recommended for those with an interest-only mortgage.

Decreasing Term Life Insurance<

Decreasing term life insurance provides a lump sum amount that decreases over time, in line with the way a repayment mortgage decreases. Your monthly premiums are guaranteed and won’t change over the term of the policy. Our experts are more likely to suggest a decreasing term life insurance policy if you have a repayment mortgage.

 

We don’t expect our clients to have a clear understanding of what mortgage protection life insurance best suits them, but we are happy to provide free advice and guidance. Following our phone conversation, we’ll search our network of trusted insurance providers to find the most suitable policy for you. We often have access to exclusive deals unavailable to the general public!

You should consider life insurance if you have…

Dependants, like school-age children.

A partner who relies on your income.

A family living in a mortgaged or rented home.

In the event of your passing, a life insurance policy can provide financial support for your loved ones. You could also consider funeral cover, which pays for funeral expenses – easing the burden on your family during a difficult time.

However, you should check if you’re already covered through your employer’s benefits package, which often includes ‘death in service benefits’ linked to your salary. If so, you might not require an additional policy, BUT keep in mind that leaving your job or being made redundant could leave you without any cover!

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  • 15 Minute Read Time

Do You Need Life Insurance?

If you’re the primary breadwinner or share financial responsibilities, a life insurance policy can help your family maintain their standard of living in the unfortunate event that you’re no longer around to support them.

Read More

Life Cover Terminology

Understanding life insurance terminology is essential for policyholders to make informed decisions about their cover, we have broken down the meaning for some of the most used terms.
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Why Choose The Insurance Surgery?

Rated ‘Excellent’ on Trustpilot.

We take pride in the experience that we offer, guaranteeing excellent service at all times.

25 years Experience.

With 25 years of specialist life and protection experience, we can find the perfect policy for you.

Access to a range of insurers.

With a broad selection of partners, we are well-equipped to find the best insurance deals for you.

Award-winning broker.

Known for making insurance simple, The Insurance Surgery is a trusted, award-winning broker.

How Much Does Mortgage Life Insurance Cost?

The quotes you may receive on mortgage life insurance can vary depending on various factors. These can include:

Age

Health

Family

Medical history

Lifestyle

Details of your mortgage

For a clearer idea of the average cost of life insurance, visit our Guide.

Let’s take a look at some examples of how much mortgage protection life insurance can cost.

Mortgage Life Insurance Example Cost

John is a software engineer who is married with two children. He is 35 years old and a non-smoker. He and his wife have just bought a new house. The outstanding mortgage amount is £200,000 with a term of 25 years. He wants to make sure that his family is financially protected should he die.

John decides to take out a level term policy with a payout of £200,000 over a term of 25 years.

John’s monthly premiums are £10.08. John would pay £120.96 per year.

We found James the increasing policy below:

Total Cover
Amount:

£200,000

Monthly Premium
Cost:

£10.08

Duration of
Policy:

25 Years

Untitled design (59)
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Mortgage Life Insurance Example Cost

Helen is 45 years old and works as an accountant. She is married with one child and has an outstanding mortgage of £100,000 over 15 years. She is a cancer survivor and was given the all-clear two years ago. She has a family history of cancer. She takes out a decreasing term policy with an initial £100,000 payout over 15 years.

Helen’s monthly premium starts at £6.61.

Her payout starts at £100,000 and also decreases over time.

At the start of the policy: £6.61 per month and £100k payout.

We found James the increasing policy below:

Total Cover
Amount:

£100,000

Monthly Premium
Cost:

£6.61

Duration of
Policy:

15 Years

helen
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How much cover do you need?

You can use our Cover Calculator below to determine how much cover you need. Additionally, you will need to take into consideration the following:

Any outstanding debts

Mortgage/rent

Number of dependants

Take-home pay or income from other sources

Speak to our team of experts for FREE
specialist advice today.

Monday to Thursday:

9:00am – 8:00pm

Friday:

9:00am – 3:00pm
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Call us on 0800 083 2829

Facts About Life Insurance.

Life insurance can serve multiple purposes, including income replacement, wealth transfer, estate planning, and business succession. But how does life insurance shape up with the UK population?

7.5 million families

in the UK have no life insurance or critical illness cover.

£40,000

The average life insurance policy in the UK covers only about £40,000.

28%

of UK adults believe life insurance is too expensive.

30%

of people get life insurance due to becoming a parents

Forbes Advisor, 2025

Mortgage Life Insurance Add-Ons

For additional mortgage security, you may want to consider the following products!

Critical Illness Cover

Critical illness cover can help you pay off some of your mortgage if you were to suddenly get diagnosed with a serious illness.

Income Protection Insurance

Income Protection Insurance will provide you with a monthly tax-free income if you’re unable to work due to illness or injury.


What Happens to Life Insurance When Your Mortgage Is Paid Off?

If you pay off your mortgage before your policy ends, you have four choices:

  1. Cancel the mortgage life insurance cover.
  2. Cancel the mortgage life insurance and take out a new life insurance policy.
  3. Continue with the mortgage life insurance and make no changes to the policy.
  4. Continue with the mortgage life insurance policy, but adapt it to suit your current lifestyle.

Benefit from Our Life Insurance Policies Today.

Relax, knowing that your family can receive the financial support that they need after you pass, and trust The Insurance Surgery to guide you through the life insurance process. With 25 years behind us, we are a trusted broker known for our expertise, prioritising transparency, and providing excellent customer service. So, rely on us to ensure you receive the cover you need at a fair and affordable price.

For a life insurance quote, contact us today on 0800 083 2829 to schedule a free consultation and take the first step towards protecting yourself and your loved ones financially.

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  • 15 Minute Read Time

Understanding Inheritance Tax (IHT) and Life Insurance

Understanding how IHT works and the ways to mitigate its impact can help you plan and ensure that your loved ones don’t face unexpected tax bills.  

Read More
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Frequently Asked Questions

Do you need life insurance to get a mortgage?

Mortgage protection insurance is not a legal requirement, but if you are taking out a joint mortgage loan, many lenders will question how you would make your repayments if one person were to pass away.

Mortgage protection insurance provides financial security for your loved ones by paying out a lump sum to clear your mortgage if you die within the term of the policy.

You may find, however, that some mortgage lenders will require that you have life insurance as a condition of the mortgage.

Mortgage life insurance can be a valuable investment for homeowners who want to protect their loved ones financially. It pays out a lump sum to clear your mortgage if you die during the term of the policy.

Mortgage life insurance covers the cost of your outstanding mortgage if you die within the term of the policy. It is designed to protect those you leave behind from struggling to pay mortgage payments or being forced to sell their home.

Yes, you can cancel your mortgage life insurance, but this will mean that your family is no longer protected financially. Check your policy terms and conditions to find out more.

Life insurance is unique – just like you.

Life Insurance for Parents

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Life Insurance for Dads

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Life Insurance for Sports & Hobbies​

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Life Insurance for Self-Employed

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Income Protection

Find Out More

Life Insurance for Smokers

Find Out More

For More Information, Check Out Our Latest Blogs

Stay informed with the latest updates in the insurance industry for 2025 here.

We aim to provide clear advice, breaking down the jargon, so you understand the importance of protection insurance.
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Speak to our team of experts for FREE
specialist advice today.

Monday to Thursday:

9:00am – 8:00pm

Friday:

9:00am – 3:00pm
Get a Quote
Call us on 0800 083 2829

Speak to our team of experts for FREE
specialist advice today.

Monday to Thursday:

9:00am – 8:00pm

Friday:

9:00am – 3:00pm
Get a Quote
Call us on 0800 083 2829
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Copyright © 2025 The Insurance Surgery Ltd. The Insurance Surgery is authorised and regulated by The Financial Conduct Authority. We are entered on the Financial Services Register No 401425 at https://www.fca.org.uk Registered in England and Wales. No 5137288. Registered and trading from 2nd Floor, Pickford Street Mill, Pickford Street, Macclesfield, SK11 6JD The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.

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