When arranging cover for your mortgage, the most common form of life insurance obtained is decreasing term life insurance.
This type of protection provides a sum assured which declines throughout the term of your policy in line with the remaining amount of a repayment mortgage so that if a claim is made, the outstanding balance of the mortgage will be covered.
However, the cost of properties across the UK varies significantly depending on location. As a result, the amount of cover required will vary also.
The larger the sum of protection you require, generally, the higher the cost of your life insurance premiums.
In 2020, the average mortgage debt in the UK is £130,000 but is likely to be much larger in certain areas of the country.
Surrey is the most expensive place to purchase a house in the UK, with an average cost of £549,659. Therefore, it's easy to see that the average cost of life insurance to cover a mortgage within this county is likely to be above the national average.
The length of your mortgage and your age will also impact the cost of your premiums, with those requiring a longer-term, or taking out cover at an older age, being charged higher premiums.
The table below shows the average life insurance cost for a 30-year mortgage dependant on age at application:
To determine the cost of life insurance to protect your own mortgage, it's essential to get an individually tailored quote.