Do I need life insurance for a mortgage?
You don’t have to get life insurance for a mortgage, but it could help to pay off an outstanding mortgage if you die while covered by the policy.
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Mortgage life insurance explained
Home is where the heart is, and mortgage life insurance is designed to help your loved ones keep a roof over their heads if the unexpected happens. In essence, it's a type of life insurance that can be used to help repay an outstanding mortgage if you die while covered by the policy.
No, you’re not legally obliged to get life insurance for a mortgage. However, some lenders may consider it a precondition for letting you borrow money to buy a home.
Getting the keys to a new home is always exciting, whether you’re buying your first property or you’ve been around the block. But when you consider that average UK house prices were £271,000 as of May 2026, for most of us, the responsibility of a mortgage is a reality of homeownership.
So, if you’re a homeowner with children, a partner, or other dependants who rely on you financially, could they pay the mortgage if you were to pass away? Mortgage life insurance is designed to protect the family home should the worst happen.
Explore your options and find out how life insurance can help you protect what matters most — your home.
You don’t have to take out life insurance to take out a mortgage – but it’s a smart move.
Barry explains more in this short video.
What types of life insurance might I need for a mortgage?
When buying a house or flat, what type of life insurance do you need?
We offer two types of life insurance which can be used to help protect a mortgage.
Learn more about our life insurance products and which option may be right for you.
Life Insurance – this could pay out a lump sum if you die while covered by the policy and help your family to pay the mortgage or help maintain their lifestyle and everyday living expenses.
Decreasing Life Insurance – this is designed to help protect a repayment mortgage so the amount of cover reduces roughly in line with the way a repayment mortgage decreases.
How much is life insurance for a mortgage?
Here you can see how much the average monthly premium is for a range life insurance policies. When you're ready, you can get a personalised quote to find out how much your policy could cost.
Some buyers choose to take out life insurance for the duration of their mortgage – such as 25 years – so they have financial protection during these years. You can also take out short term life insurance to cover a shorter timeframe.
If you're taking out life insurance to help protect a repayment mortgage, you'll usually choose an amount of cover that reflects your outstanding mortgage balance. The right amount of cover will depend on how much you still owe and how long is left on your mortgage term.
Use our life insurance calculator to estimate how much life insurance cover you might need.
Buying a home with your partner
Life insurance is important to consider when buying a house as a couple. If you’re buying your home with your partner, your mortgage repayments could be calculated on the basis of two salaries. If you or your partner died while your mortgage loan was still outstanding, would one of you alone be able to keep up the regular mortgage repayments?
Life insurance can help by paying out a cash sum if you die during the length of your policy, which can be used to help pay the remaining mortgage – this is what ‘mortgage life insurance’ usually refers to, meaning they can continue living in your family home without worrying about the mortgage.
Life insurance as a landlord
If you’re buying a home as an investor, or you already own a home and you’re looking to rent it out, you may still need life insurance. This way, you can help cover the remaining balance in the unfortunate event you pass away. You might want to increase your life insurance cover to account for the higher mortgage liability should you refinance your investment property or portfolio. Please note that life insurance is not the same as landlord insurance, which refers to enhanced coverage for the structure of your home (buildings insurance) and your possessions (contents insurance).
Do I need life insurance if I don't have a mortgage?
It is a common misconception that life insurance is only relevant to homeowners. While it’s true that renters are less likely to take out life insurance, that doesn’t mean you don’t need life insurance if you don’t have a mortgage. If you’re a tenant, think about the financial impact of the loss of your salary if you were no longer around. If you live with your family, could your loved ones afford the rent in your absence? What about other costs like household bills or child care costs if you have a family. In essence, life insurance is always worth considering if other people rely on you financially, it's not just for those with a mortgage.
Read our guide to life insurance for renters.
