Keep your family in the home you love.
The short answer
Mortgage life insurance is term life cover designed to pay off your mortgage if you die during the policy term. For a repayment mortgage it is usually decreasing cover, which falls as the loan does; for interest-only it is usually level cover. It protects the home, but may not leave money for your family’s living costs.
Who this cover may suit
- You have a mortgage that a partner or family would struggle to repay alone.
- You are buying your first home or remortgaging.
- You share a mortgage with a partner and want it cleared if either of you dies.
- You want to protect the home before thinking about wider family cover.
When to consider another option
- You also need money for everyday living costs — add a level cover layer or look at family income cover.
- You want to cover mortgage payments if you are ill or lose your job — that is a different kind of protection.
- Nobody else would inherit the debt and the property would simply be sold.
How it works
Tell us about you
A few simple questions about your age, health and what you want to protect.
Choose amount and term
Pick how much cover you want, its shape and how long it should last.
Review real options
See options based on your answers, with a real person to help if you want one.
How mortgage life insurance works
It is not a separate product — it is term life insurance set up around your mortgage. You choose a starting amount equal to the balance, a term matching the mortgage and a shape that fits the loan. If you die within the term, the payout can clear what is owed. MoneyHelper explains the main types of life insurance and how they are used. [2] Our life insurance and your mortgage guide covers each step.
| Mortgage type | Usual cover | Why |
|---|---|---|
| Capital repayment | Decreasing term | Payout falls broadly in line with the balance |
| Interest-only | Level term | The full balance stays owed until the end |
| Part and part | A mix of decreasing and level | Each layer matches its part of the loan |
| Mortgage plus young family | Mortgage layer plus level family cover | Clears the loan and supports living costs |
Do lenders require it?
Most UK lenders do not make life insurance a condition of lending, but many recommend it, and advisers often raise it when you arrange a mortgage. You do not have to buy it from your lender or mortgage broker. First-time buyers can read our first-time buyers guide.
Joint or single mortgage cover?
A joint first-death policy pays once and clears a shared mortgage, often at lower cost. Two single policies can leave the survivor covered and are easier to split if you separate. Compare the options on our joint life insurance page.
A family protecting a new home
Fictional example: Ben, 38, and Nadia, 36, a £260,000 repayment mortgage over 27 years and a son aged 4. No prices are shown because real premiums depend on underwriting.
- Mortgage layer
- Joint decreasing cover from £260,000 over 27 years
- Family layer
- Single level policies until their son is around 21
- Check
- Assumed interest rate compared with their mortgage rate
- Review
- At every remortgage or change in borrowing
Their home would be protected, and the survivor would have money for everyday costs. Read more about decreasing cover on our decreasing term page.
Trusts and the payout
A payout outside a trust usually joins your estate, which can mean waiting for probate and may count towards Inheritance Tax above £325,000. [4] HMRC explains how trusts are taxed. [5] The ONS publishes inflation data worth considering when you set a level sum for an interest-only loan over many years. [9]
Mortgage life insurance at a glance
What works well
- Protects the home for the people who live in it.
- Decreasing cover is usually the lowest-cost option.
- Can be layered with family cover.
What to watch
- May leave nothing for living costs.
- Decreasing cover can fall faster than your real balance.
- Needs reviewing when you remortgage.
What happens to a mortgage if you die without life insurance?
Without a payout, the mortgage debt does not disappear: it normally passes to whoever inherits the property, and a joint mortgage automatically becomes the sole responsibility of the surviving borrower. A surviving partner or family may need to keep up repayments from savings or other income, or sell the home, and the property forms part of the estate, which can affect how quickly assets are released during probate. Some people become eligible for the Government’s Bereavement Support Payment, a short-term benefit that can help with costs after a partner dies, though it is not designed to cover a mortgage in full. [10] Mortgage life insurance set up alongside the loan avoids this gap by paying out directly.
Can you get mortgage life insurance with a health condition, or later in life?
A health condition or older age does not automatically rule out mortgage life insurance, but it can affect the terms offered. Insurers ask medical and lifestyle questions as part of underwriting, and under the Consumer Insurance (Disclosure and Representations) Act 2012 you must take reasonable care to answer accurately. [6] MoneyHelper notes that people with health conditions can often still get cover, sometimes with an adjusted premium or extra evidence requested from your GP. [2] If medical questions are a barrier, our over-50s life insurance page compares options that do not rely on them.
| Mortgage life insurance | Critical illness cover | Income protection | |
|---|---|---|---|
| Pays out | If you die during the term | On diagnosis of a listed condition | A monthly income if you cannot work |
| Typical use | Clears the mortgage for survivors | A lump sum towards the mortgage or costs during illness | Keeps up payments while you recover |
| Medical questions | Yes | Yes, often more detailed | Yes |
| Often combined with | Family income benefit | Mortgage life insurance | Mortgage life insurance |
Reviewing cover with a health condition
Fictional example: Aisha, 52, remortgaging a £140,000 interest-only balance over 15 years, with managed type 2 diabetes. No prices are shown because real premiums depend on underwriting.
- Application
- Declared her condition in full on the form
- Outcome
- Offered level cover with an adjusted premium
- Alternative considered
- An over-50s plan with no medical questions, but a lower maximum sum
- Decision
- Proceeded with medically underwritten level cover, written in trust
Declaring her condition accurately meant the cover was unlikely to be challenged later. Our medical questions guide explains what insurers typically ask.
The FCA’s market study into pure protection found that competition generally works well, while noting many households remain underinsured. [3] Answer every application question accurately: under the Consumer Insurance (Disclosure and Representations) Act 2012 you must take reasonable care not to misrepresent. [6]
Employer death-in-service cover is valuable, but MoneyHelper notes it usually ends when you leave the job. [7] If a claim is ever disputed, the Financial Ombudsman Service handles complaints about insurers free of charge. [8]
Keep exploring
- Life insurance and your mortgage: what cover do you need?
- Life insurance for first-time buyers: protecting the new mortgage
- Joint vs single life insurance: which suits a couple?
- Level, decreasing and increasing term cover compared
- Decreasing term life insurance
- Level term life insurance
- Joint life insurance
- Term life insurance
Frequently asked questions
What is mortgage life insurance?
Mortgage life insurance is term life cover arranged to pay off your mortgage if you die during the policy term. It is not a separate product type: it is usually decreasing term cover for a repayment mortgage, where the payout falls as the balance is repaid, or level term cover for an interest-only mortgage, where the balance stays the same. The payout goes to your estate, to a joint policyholder or to the beneficiaries of a trust, who can then use it to clear what is owed on the home.
Is mortgage life insurance a legal requirement in the UK?
No. There is no legal requirement to have life insurance when you take out a mortgage, and most UK lenders do not make it a condition of lending. Many lenders and brokers do recommend it, because it protects the people who would be left with the loan. You are free to arrange cover yourself rather than through your lender or broker, and to choose the shape and term that fit your circumstances. If you have a partner or family who rely on the home, it is usually worth considering.
Should I get decreasing or level mortgage cover?
For a capital repayment mortgage, decreasing cover is the usual match because the payout falls broadly in line with the balance, and it is typically the lower-cost option. For an interest-only mortgage, level cover is the usual match because the full balance stays owed until the end. If you have a part-and-part mortgage, you can combine both. If you also want money left for your family, a level layer on top of the mortgage cover can provide it. Our cover shapes guide compares the options.
How much mortgage life insurance do I need?
Start with the outstanding mortgage balance and the number of years left on the mortgage term. That gives you the starting sum and the term for the mortgage layer. Then ask whether your family would also need money for living costs, childcare or other debts once the mortgage is cleared. If so, a separate level policy can meet those needs. Subtract any existing cover, such as death-in-service from an employer, but remember it usually ends if you change jobs. The estimator on this page gives a transparent starting point.
What happens to my mortgage cover if I remortgage or move?
Your life insurance policy is separate from your mortgage, so it usually continues when you remortgage or move home. However, the cover may no longer match your borrowing. If you borrow more, extend the term or switch between repayment and interest-only, your existing cover could leave a gap. Decreasing cover can also fall faster than a new mortgage balance. Review your cover whenever your mortgage changes. You may be able to top up with a new policy rather than replace the existing one, which keeps your original terms.
Do I need mortgage life insurance if I already have death-in-service?
Death-in-service from an employer can help, but it has limits. MoneyHelper notes that it usually ends when you leave the job, and the amount is often a multiple of salary that may not match your mortgage. It is also not always paid in a way you control. Many people count it as a useful extra but do not rely on it alone to protect the home. Separate mortgage cover stays in place if you change jobs, become self-employed or take a career break, and can be written in trust.
Can I get mortgage life insurance with a pre-existing health condition?
Usually, yes, though the condition may affect what is offered. Insurers ask about your health and lifestyle when you apply, and you must take reasonable care to answer accurately under the Consumer Insurance (Disclosure and Representations) Act 2012. Depending on the condition, you may be offered cover at an adjusted premium, with a specific exclusion, or the insurer may ask for more evidence, such as a GP report, before deciding. Some conditions make little difference to the outcome, while others lead to a higher premium. It is worth comparing more than one insurer, since underwriting views can differ, or speaking to a specialist if a previous application was declined.
What happens to the mortgage debt if I die without any life insurance?
The mortgage debt does not disappear: it normally transfers to whoever inherits the property, and on a joint mortgage the surviving borrower becomes solely responsible for the repayments. Without a life insurance payout, a surviving partner or family may need to cover the mortgage from savings, other income, or by selling the home. The property also forms part of the estate, which can affect how quickly it can be dealt with during probate. Some people may be eligible for short-term government support such as the Bereavement Support Payment, but this is not designed to cover mortgage repayments in full. Mortgage life insurance is one way to avoid relying on these alternatives.
Sources
- Association of British Insurers — Protection insurers pay out £7.84 billion in claims in 2025 (2026-06-29)
- MoneyHelper — What is life insurance? (2026-09-28)
- Financial Conduct Authority — MS24/1.5 Market Study into the Distribution of Pure Protection Insurance Products: Final Report (2026-09-21)
- GOV.UK — How Inheritance Tax works: thresholds, rules and allowances (2026-09-28)
- HM Revenue & Customs — Trusts and Inheritance Tax (2010-11-08)
- legislation.gov.uk — Consumer Insurance (Disclosure and Representations) Act 2012 (2012-03-08)
- MoneyHelper — Life insurance through work (2026-09-28)
- Financial Ombudsman Service — Complain about a financial business (2026-09-28)
- Office for National Statistics — Inflation and price indices (2026-09-17)
- GOV.UK — Bereavement Support Payment (2026-09-28)