What is mortgage life insurance?

Mortgage life insurance is designed to pay off the rest of a mortgage when the policy holder dies. You can generally take out single or joint cover, and you can choose policies to suit repayment or interest-only mortgages.

Types of mortgage life insurance

There are two main types of mortgage life insurance:

Serious Illness Benefit option

For an additional monthly cost you could add this extra protection for you and your children. It gives you a financial safety net if you are diagnosed with one of the six illnesses that we define.

FAQs about mortgage life insurance

Level Cover is life insurance where both the monthly payments and the payout amount stay the same over the length of your policy. If you die within the term, your family will be given the pre-agreed sum.

For Decreasing Cover, the payout sum shrinks throughout the length of your policy. Your monthly payments stay the same but how much you pay each month is usually less than Level Cover. You could use it to help cover a mortgage or any other loan that gradually gets repaid.

You’ll need to keep making monthly payments throughout the period of cover, unless you die or you are diagnosed with a terminal illness. You can stop making your payments at any time. But if you do, your cover will end, and you won't get anything back.

If you stop making your monthly payments, then your cover will stop. It is worth remembering that you won’t get any money back, as this isn’t a savings plan. You can’t cash in your cover at any time.

Get in touch

Call us on 0800 085 4201 for more help. Lines are open 8am to 6pm, Monday to Friday, excluding bank holidays.

Contact us