Life insurance when you have a mortgage
Cover that clears the mortgage leaves a family with a house and no income coming in. Those are two different jobs, and usually two different policies.
Match decreasing term cover to a repayment mortgage and level term to an interest-only balance, over the same term as the loan. Then add a second layer for income replacement, because a family with no mortgage still has bills. Two single policies usually beat one joint policy.
Matching the cover to the mortgage
Three things should line up: the amount, the term and the type. Getting any one of them wrong leaves a gap or wastes money.
| Mortgage type | Cover type | Why |
|---|---|---|
| Repayment | Decreasing term | The balance falls, so the cover can too |
| Interest only | Level term | The balance never falls |
| Part and part | A combination | Level for the interest-only part, decreasing for the rest |
| Offset or flexible | Level term | The balance can go back up |
This covers the debt. It does not cover the income the household loses, which is a separate calculation.
Cover the debt, then cover the family
Clearing the mortgage is not the same as replacing the income. A family with no mortgage still has to eat, heat the house and pay council tax.
That second layer is usually level term or family income benefit.
Joint or two single policies
Joint life first death
Pays onceOne policy, one payout, then it ends. Slightly cheaper, and it leaves the survivor with no cover.
Two single policies
Pays twice if neededEach of you is covered separately. More total cover for a modest extra cost, and each policy can be written in trust separately.
On separation
Two policies are easierA joint policy after a split is awkward. Two singles can go their own way.
Health differences
Two policies helpOne person's health loading does not affect the other's premium.
Want this checked against your own situation?
Send us the figures and we will tell you what they mean. If it is not ours to advise on, we will say who should.
Ask us a questionPrefer WhatsApp? Message us there. We are open Monday to Saturday, 9am to 8pm.
We advise on and arrange life cover, critical illness cover and income protection ourselves. There is no fee to you for our advice. If you take out a policy, the insurer may pay us a commission.
Mortgage payment protection is not the same thing
Mortgage payment protection insurance covers the monthly payment for a limited period, often twelve months, on accident, sickness or unemployment.
It is short-term. Income protection covers a broader need for far longer.
The exception is unemployment cover, which income protection does not include at all. If redundancy is the main worry, that is a different product.
Where you stand
- You are buying or remortgaging
- You have borrowed more against the property
- The policy term no longer matches the mortgage
- You have had a child since the cover started
- The household would still be short each month
- The policy is not written in trust
- Only one of you is covered
- Nobody knows the policy exists
Check broadband before you make an offer
Broadband speeds can vary street by street, so check the exact address before you commit. Ofcom's free checker shows which broadband speeds and mobile coverage are available at any UK property.
Want all your bills in one?
We can introduce you to a specialist who can combine your mobile, broadband and utilities into one bill. There's no fee for the introduction.
We don't provide these services ourselves. Switching household bills is not a regulated financial service, so FCA protections and the Financial Ombudsman do not apply. We'll only pass your details to the specialist if you ask us to. See our privacy notice.
Questions people actually ask
What life insurance do I need with a mortgage?
Is mortgage life insurance compulsory?
Should we have a joint policy or two single ones?
What happens to my cover if I remortgage?
Is mortgage payment protection worth it?
How do I check broadband speed at a property?
Where to go next
Figures checked on 1 September 2026 and correct for the 2026/27 tax year. Rates change, so check the source before you act on a number.
Buying or remortgaging?
The cover side is ours to advise on and arrange. Send us the balance and the term and we will match it properly.
Start a conversationPrefer WhatsApp? Message us there. We are open Monday to Saturday, 9am to 8pm.
We advise on and arrange life cover, critical illness cover and income protection ourselves. There is no fee to you for our advice. If you take out a policy, the insurer may pay us a commission.