Arranging life insurance in your 40s can open you up to…
In truth, there’s no difference between life insurance and mortgage life insurance.
Mortgage life insurance, also known as ‘mortgage protection life insurance’, isn’t a product in its own right.
Your life insurance policy will typically be aligned with your mortgage term and remaining balance to ensure there’s adequate cover for your loved ones should anything happen to you.
This can allow your loved ones to remain in the family home after your passing.
Watch our mortgage life insurance video below for more information:
Compare mortgage life insurance quotes through Reassured from some of the UK’s best life insurance providers.
Quotes are personalised, fee-free and without obligation.
Keep reading to find out everything you need to know about life insurance for a mortgage in the UK, including:
No, it’s not a legal requirement to have life insurance for a mortgage.
It’s completely possible to obtain a mortgage without life insurance in place.
However, a mortgage is likely to be the largest debt the vast majority will incur during our lifetime - therefore, many secure life insurance for mortgage protection.
While most mortgage providers won’t require you to take out life insurance before approving your mortgage, some lenders may request that a policy is in place before they release the funds (ensuring their risk is protected).
It’s also important to consider how your loved ones would afford to make repayments if you were no longer around.
Key questions to ask yourself include:
We have a complete do I need life insurance for a mortgage guide for more information »
How much life insurance you require to cover your mortgage will depend on:
Why not input your mortgage, as well as any other financial commitments, into our mortgage life insurance calculator below to work out the level of cover you require?
Mortgage life insurance will work in the same way as any other life insurance policy.
At Reassured we can help you find suitable life insurance to help cover your mortgage. Simply get in touch for your free quotes.
Whilst you aren’t required to secure life insurance, most commonly term life insurance is taken out to help protect a mortgage.
This is because you can choose a policy term to mirror your mortgage term and you can also choose a sum assured to match your remaining mortgage balance.
This could allow your loved ones to pay off the mortgage in full or allow them to keep up with monthly payments.
Term life insurance options include:
Some lenders and estate agents may also suggest the following policies to help protect your mortgage:
Again, it isn’t a legal requirement to secure either of these policies to protect your mortgage - however they can provide additional cover should anything happen to you.
The best mortgage life insurance to meet your needs will depend on the type of mortgage you have, as well as other financial commitments and your available budget.
Reassured can help you conduct a full level term vs decreasing term life insurance comparison using our FCA-regulated broker service.
We can also help you to compare mortgage life insurance with critical illness cover.
Simply get in touch for your free quotes.
Mortgage life insurance can be secured through Reassured from just 20p-a-day.
However, the exact cost of mortgage life insurance will depend on your personal circumstances.
During the application process, you’ll be required to provide key information in order for insurers to calculate your monthly premium. This includes:
The table below shows the monthly prices for both decreasing term and level term mortgage life insurance.
As of July 2022, the average house price in the UK is £292,000, with an average mortgage term of 25 years.
Therefore, our quotes are based on a £292,000 of cover, over a 25-year term, for a non-smoker (in good health).
|Age||Decreasing term mortgage life insurance||Level term mortgage life insurance|
The cost of mortgage life insurance will vary depending on your personal circumstances.
Securing cover at a younger age can help you to lock in the most favourable premium price.
If your mortgage is less than the example used above, it could be possible to secure a cheaper premium price.
Comparing quotes could help you save money, why not let Reassured help you compare free quotes?
We can help you compare mortgage life insurance quotes from leading UK providers as well as smaller specialists, starting from just 20p-a-day.
Often a property purchase is more achievable if you take out a joint mortgage with a spouse, partner or friend.
In this case, you may wish to secure a joint life insurance policy to protect your shared asset.
Securing a joint life insurance policy can often help you save money, as there’s only one premium to pay on a policy that protects both lives.
The table below shows the price comparison between a joint mortgage life insurance policy vs two single policies.
Quotes are based on a decreasing term life insurance policy for £292,000 of cover, over a 25-year term for non-smokers in good health:
|Age||Joint mortgage life insurance price per month||Two single policies price per month||Price difference (%)|
As you can see from the table, taking out a joint mortgage life insurance policy could help you make a substantial saving on your cover.
However, joint life insurance will only provide one pay out (usually after the first death).
If you have dependents, it could be more beneficial to take out two separate policies to provide two pay outs.
A friendly member of the Reassured team can compare joint mortgage life insurance vs two single policies to help you find the right life insurance to protect your mortgage.
Simply get in touch today.
No, mortgage payment protection insurance (MPPI) and mortgage life insurance are two separate products.
The difference between mortgage protection and life insurance is that one pays out while you’re alive and the other pays out after your passing.
MPPI works in a similar way to an income protection policy, as it will pay out to you each month to help cover the cost of your monthly mortgage payments while you’re unable to work.
Whereas mortgage life insurance will pay out a lump sum to your loved ones after your passing to help them cover mortgage costs and remain in the family home.
Mortgage payment protection insurance isn’t currently offered by Reassured, but we can help you conduct a mortgage life insurance comparison using our award-winning broker service.
What happens to your life insurance policy once your mortgage is paid off will depend on your chosen policy term.
If you’ve opted to have your policy mirror your mortgage term, your life insurance will expire in line with your mortgage.
If you’ve chosen a longer term to help cover other aspects of your life, your policy will continue until:
If you re-mortgage, you’ll need to ensure that your current life insurance policy still meets your requirements.
It’s common for people to re-mortgage for any of the following reasons:
To ensure your loved ones could afford your new mortgage, if you were to pass away, you could:
It’s best to explore both of these avenues to make sure you’re getting the best deal and not paying over the odds for cover.
Reassured can help you compare life insurance quotes for a mortgage from a panel of insurers to help you find an affordable policy. Simply get in touch.
Yes, you can write your mortgage life insurance policy in trust.
Writing your policy in trust is a legal arrangement designed to ensure that the pay out from your policy is distributed as you intended.
When writing your life insurance in trust, your policy will be passed over to a named trustee/s (of your choosing) after your passing, who will then distribute the funds as per your wishes.
This process also means your policy won’t form part of your estate.
This could mean that your loved ones receive a greater sum to help pay off the mortgage, at a faster pace to allow them to continue with payments as soon as possible.
At Reassured we’re able to offer a free trust writing service on the majority of the policies we arrange.
Our dedicated team can help you fill out the necessary forms and unpick any confusing insurance jargon.
If you’re single, and don’t have any dependents, you may not require mortgage life insurance.
If there’s no one you’d like to pass your property onto then this type of protection may not be necessary.
In this instance, if you were to pass away, your property would go to the government by default.
However, if you’d like to keep your home in the family or pass it onto a friend, life insurance could allow you to keep on your legacy by providing a lump sum pay for your loved ones to help cover your mortgage costs.
Why not read our life insurance for a single person guide to find out whether life insurance is right for you?
Alternatively, you can get in touch for personalised and no-obligation quotes.
Whether you’re securing your first mortgage, or are obtaining a new mortgage to downsize from your family home, there are still options available to those over the age of 50.
If you’re in good health, don’t smoke and no other high-risk factors are identified, it could still be affordable for you to take out either of the term life insurance options mentioned above.
However, over the age of 50, you may also be considering your funeral costs and whether your loved ones could afford to pay for your send off.
Therefore, a form of life assurance may be more beneficial to guarantee a pay out to help protect your mortgage, cover expensive funeral costs and/or leave an inheritance.
Due to the smaller pay out from over 50 life insurance it may not be sufficient to cover the full cost of a mortgage.
However, if you only have a small portion of your mortgage left to pay, the pay out from an over 50s plan could help to cover this.
Alternatively, whole of life insurance can allow you to provide a much larger pay out for your loved ones - although this could be costly if you have a pre-existing medical condition.
To compare over 50s mortgage life insurance, contact Reassured.
A friendly member of the team will be able to provide you with all your available options to help you find a suitable policy to protect your mortgage.
Many of us rely on a mortgage to purchase our home - in fact, there are around 6.8 million mortgaged homes across the UK.
With outstanding mortgage debt currently at £146,427 and with 1 in 5 adults having less than £1,000 in savings, it’s easy to see the importance of having the right protection in place.
If you were no longer around to help pay the mortgage, what would happen to the family home?
Unfortunately, 44.8 mortgage possession claims and 9.9 mortgage possession orders were issued everyday in October to December 2022, as a result of families not being able to keep up with mortgage payments.
But did you know you can protect your family and your home from as little as 20p-a-day?
For most of us, our home is the single largest investment we’ll ever make.
More importantly, it provides a roof over our loved one’s heads.
The good news is you can secure your family’s home and their financial future by taking out mortgage life insurance.
Remember, don’t feel pressured to take out cover through your lender or estate agent’s preferred insurer - you can secure a policy with whoever you like.
So why not compare mortgage life insurance quotes through Reassured?
We work with a panel of top providers, meaning we can help you find the right policy to meet your needs at the best price we can offer.
All quotes are personalised, no obligation and completely fee-free.
Arranging life insurance in your 40s can open you up to…
Research indicates that there’s a sizeable gap between…
Is it necessary to take out life insurance as a tenant…
According to internal data from Reassured, the average cost…
Securing life insurance doesn’t have to be confusing. Read…
Find out if LV= are the right income protection provider…
Award-winning life insurance provider Legal & General were…
Most dads need life insurance to secure the financial…
Life insurance helps mums secure the financial future of…
If you're overweight you may have wondered how this will…
Many life insurance policies now come with a free welcome…
Establish how much life insurance cover you need by reading…
Yes very pleased with my choice very helpful easy to understand and very pleasant transaction all good!Mrs M Rushworth
Very professional and reassuring. Life insurance sorted in about 10 minutes.Stephen Davies
very courteous and friendly. Polite professional and empathic.Stedroy Fenton
Another happy customer I am. They are very professional and kind. Fully communicative. I recommend.Piotr Stepien
Really attentive during the call, good clear guidance throughout. Well done.Michael Reynolds
Amazing service quick fast and easy and Joey was a star on the phone really help me thanks.Sera Woolley
I made the right choice and now I feel relieved that I did.glyn
Really genuine kind and compassionate team with great knowledge and friendly approach highly recommend them!Katelia Merritt
I must say Jake took me through every step and was brilliant, recommend them anytime.Allan Green
Very happy and everything explained well, so glad a took the time to take the call, normally I would say I'm busy. But compared to other company's we save so much more money.Jenny Berry