Mortgage life insurance

Secure your family’s future


What is mortgage life insurance?

Mortgage life insurance is a type of life insurance that will pay off your mortgage if you were to pass away or become critically ill before having done so yourself.

Mortgage life insurance, also known as decreasing life insurance, will typically pay out what’s left to pay on your mortgage as a lump sum when you pass away or become ill to help both you and your family with your mortgage repayments.

Mortgage life insurance gives you essential peace of mind that if anything serious were to happen to you such as a critical illness, both you and your loved ones would still be covered, and you would not lose your home.


How does mortgage life insurance work?

Mortgage life insurance is there to protect your family home when you are no longer able to. Indeed, if you were to pass away before paying off your mortgage or if you were to be diagnosed with a terminal illness with a life expectancy of fewer than twelve months, mortgage life insurance would ensure that your loved ones can continue living in their home.

With mortgage life insurance, your family will receive a lump sum which they can then use to pay off your mortgage. When acquiring mortgage life insurance, you can choose both the amount of cover you would like as well as how long you need it for. Indeed, just as your mortgage decreases over time, the amount you are covered for decreases over the term of your policy.

As a result, a mortgage life insurance policy is normally cheaper than alternative level term life insurance policies as the pay-out decreases in line with your mortgage.


Do I need mortgage life insurance?

Mortgage life insurance is useful for anyone who has a mortgage. Indeed, although mortgage life insurance is not compulsory, it is recommended for any homeowner with a mortgage to secure their family’s future, in case the worst happens.

We all know life doesn’t always go to plan and mortgage life insurance can be there to support you and your family when you need it most. Mortgage life insurance is particularly important if you have any dependents, such as a spouse and children, who rely on your income to pay the mortgage.

With mortgage life insurance you are able to ensure that your family and loved ones are able to keep up with the mortgage repayments and continue living in their home.

Indeed, mortgage life insurance may not be necessary if you do not have any dependents or family living in your home, as no-one will need to continue paying the mortgage if you pass away.

If you are interested in acquiring mortgage life insurance or are still unsure if it is necessary for your particular circumstances, please contact us today to speak to an advisor and discuss your requirements.

Alternatively, we also offer other types of insurance that can give you peace of mind that you may be interested in, including Critical Illness and Income Protection.

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