Life insurance for first time buyers 

Decreasing term life insurance

Decreasing term life insurance is often referred to as ‘mortgage life insurance’ as it’s the most common option to protect a mortgage.

You’ll be covered for a set term and a pay out will be made if you pass away during this time. Your cover amount will reduce throughout the policy term.

It’s ideal for protecting a repayment mortgage because you can choose a policy term to mirror your mortgage term and a cover amount to reduce at the same rate at your remaining mortgage balance.

Level term life insurance

Level term life insurance covers you for a set term and pays out if you pass away during this time.

As your cover amount remains the same over the policy term, it has the potential for a large pay out making it a good option to cover an interest only mortgage.

It’s also a popular choice for helping to protect family living costs, as well as the cost of running a home (bills and home maintenance etc).

Family income benefit

If your family would find it hard to budget a large sum of money during a difficult time, there’s the option of family income benefit.

Instead of paying out a lump sum to your loved ones, it will pay out in monthly instalments (to mimic an income).

The policy will cover you for a set term so you can still align your policy length with your mortgage term and you can choose a monthly cover amount to match what your monthly mortgage payment is.

• Only take out cover you need- the more cover you take out, the more you’ll pay for a policy. If you only need life insurance to protect your mortgage you can keep your premium low by only taking out the cover you actually need.
• Don’t feel pressured into taking out cover through your mortgage provider– you’re not legally obligated to take out a policy through them and by going straight through them you could be missing out on a better deal. There could be a different insurer offering the same cover for cheaper.
• Consider a joint life insurance policy– if you’ve got a mortgage with your partner and you only want cover to protect this debt, a joint life insurance policy could help you to save money on a policy. Both lives will be protected under one policy so there’s only one premium to pay.
• Compare your options– comparing quotes from a variety of insurers allows you to find a great deal for your personal circumstances. Why not use a broker to compare quotes? It’s a quick and easy way of comparing multiple quotes at once.
• Seize the day and take out cover sooner rather than later- getting onto the property ladder comes with a long to do list, don’t let life insurance fall to the bottom. Your premiums tend to be cheaper the younger you are, so it’s wise to not wait around.