Mortgage Protection Insurance

Mortgage protection is a form of life insurance — but one built specifically around your home loan. Where standard life insurance pays a lump sum your family can use for anything, mortgage protection is calibrated to clear or cover your mortgage. The goal is the same roof over their heads, whatever happens to you.

The mortgage risk most homeowners don’t think about

£130k+average UK mortgage balance — not written off on death or serious illness

25 yearstypical mortgage term — a lot can happen in that time

Your homeis at risk if repayments stop — lenders will repossess regardless of the circumstances

Whole of marketwe only recommend whole-of-market experienced advisers

Your mortgage lender has no obligation to pause repayments because you have died or become seriously ill. If the money stops coming in, the process of repossession begins. Mortgage protection insurance exists to prevent exactly that — keeping your family in their home when the worst happens.

Mortgage protection vs standard life insurance — what’s the difference? Both are forms of life insurance. The difference is purpose and structure. A standard life policy pays a fixed lump sum your family can use for anything. Mortgage protection — typically a decreasing term policy — is calibrated to track and clear your mortgage balance. It is usually cheaper, but more targeted. Many families benefit from having both.

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Free Trust Service — Included for Every Client

Placing your mortgage protection policy in trust ensures the payout reaches your family quickly — bypassing probate and reaching your beneficiaries without delay. We provide free trust guidance to every client we work with, as standard.

Find out about our free trust service

What does mortgage protection insurance cover?

Mortgage protection is not a single product — it is a category of cover. The right solution depends on your mortgage type, your health, your family situation, and your budget. We help you identify which combination of products gives your home the protection it needs.

Decreasing Term Life Insurance

The most common mortgage protection product

The payout reduces over time in line with your repayment mortgage balance. If you die during the term, the remaining mortgage is cleared. Typically the most affordable way to protect a repayment mortgage.

Level Term Life Insurance

For interest-only mortgages or broader cover

The payout stays fixed throughout the term. Suited to interest-only mortgages where the balance does not reduce, or where you want a fixed lump sum regardless of when a claim is made.

Critical Illness Cover

Protects the mortgage if you are diagnosed with a serious illness

Pays a lump sum on diagnosis of a covered condition — cancer, heart attack, stroke and more. Can be used to clear or reduce the mortgage while you are still alive and recovering.

Income Protection

Keeps repayments going if you cannot work

Pays a monthly income if you are unable to work due to illness or injury — for any reason. Ensures mortgage repayments continue even during a long-term absence from work.

How mortgage protection differs from standard life insurance

Standard life insurance pays a fixed lump sum to your family when you die — they can use it for anything. It is broad by design and gives your family maximum flexibility.

Mortgage protection is a form of life insurance with a specific purpose: clearing or covering your mortgage. A decreasing term policy tracks your outstanding balance — paying exactly what is needed to clear the debt at the point of claim. Because the potential payout reduces each year, the premium is lower than a level term policy for the same initial sum assured.

For most families, the right answer is a combination: mortgage protection to secure the home, and a broader life policy to protect the family’s wider financial position.

Key differences at a glance

Both are forms of life insurance
Mortgage protection: calibrated to your loan balance
Standard life insurance: fixed lump sum, any use
Decreasing term: cheapest mortgage cover option
Critical illness & income protection: cover living illness and inability to work

Who needs mortgage protection insurance?

Your situation	Why it matters
Anyone with a repayment mortgage	A decreasing term policy tracks your balance and clears it on death — the most targeted and affordable protection for your home
Interest-only mortgage holders	The balance never reduces — a level term policy ensures the full amount is available to repay the lender
Joint mortgage holders	If one partner dies, the surviving partner may not be able to maintain repayments alone — joint or dual policies cover this risk
Self-employed homeowners	No employer sick pay means income can stop immediately — income protection alongside mortgage cover is essential
First-time buyers	Taking on a mortgage is the biggest financial commitment most people make — protecting it from day one is the responsible starting point

Take Priya and Tom, both 32, who have just completed on their first home with a £275,000 repayment mortgage over 30 years. Tom is self-employed. Without mortgage protection, a serious illness or death could mean Priya faces repossession within months. With a decreasing term policy covering the mortgage and income protection for Tom’s self-employed income, the home is secure whatever happens.

Building the right mortgage protection plan

There is no single product called “mortgage protection insurance” — the right plan is built from the right combination of products for your specific mortgage, health, and family situation. We help you put that together properly.

Step 1: Protect against death

Decreasing or level term life insurance

Match the policy term and sum assured to your mortgage. Decreasing term for repayment mortgages. Level term for interest-only or where you want a fixed payout.

Step 2: Protect against serious illness

Critical illness cover

Add critical illness cover so a serious diagnosis does not leave you unable to clear the mortgage. Often combined with life insurance in a single policy.

Step 3: Protect against inability to work

Income protection

Ensure mortgage repayments continue if you are off sick long-term. Particularly important for the self-employed and those with limited employer sick pay.

Step 4: Write it in trust

Free with every client

Placing your life policy in trust ensures the payout reaches your family quickly, bypassing probate. We provide free trust guidance to every client as standard.

Buying a home or remortgaging?

We work closely with award-winning mortgage advisers and can make a warm introduction — so your protection and mortgage advice can be sorted together. Mortgage advice is provided by separately FCA-authorised firms. We simply make the connection, at no cost to you.

How to get mortgage protection through That’s Family Finance

We keep the process simple and pressure-free. Here is what to expect from start to finish.

Initial conversation

We start with a no-obligation chat to understand your mortgage — the balance, the type, the term, and your family situation. No forms, no pressure.

We research the market

As a whole-of-market broker, we search across every insurer — comparing policy types, definitions, and premiums to find the right combination for your home and your budget.

We talk you through your options

We present the options that best protect your mortgage, explain the differences clearly, and answer any questions. You decide — in your own time, with no pressure.

We handle the paperwork

Once you are happy to proceed, we manage the application on your behalf — keeping you informed at every stage until your cover is confirmed and in place.

Why families choose That’s Family Finance for mortgage protection

FCA RegulatedThat’s Family Finance is a trading style of RB Ame Ltd, authorised and regulated by the FCA (No. 1038034).

Mortgage-Specific ExpertiseWe understand how different mortgage types require different protection strategies — repayment, interest-only, joint, and self-employed.

Whole of MarketWe search across every insurer to find the right combination of products at the right price.

Genuinely Family-FocusedWe take the time to understand your situation properly, not just tick boxes.

No Pressure, EverWe explain your options clearly and let you decide what feels right for your family.

Talk to Us About Mortgage Protection

Your mortgage protection questions answered

Is mortgage protection insurance the same as life insurance?

Mortgage protection is a form of life insurance — but with a specific purpose. A decreasing term policy, for example, is a life insurance product calibrated to track and clear your mortgage balance. Standard life insurance pays a fixed lump sum your family can use for anything. Both protect your family; mortgage protection is specifically designed to keep them in their home.

Do I need mortgage protection if I already have life insurance?

It depends on your life insurance. If your existing policy has a sum assured large enough to clear your mortgage and still leave your family financially secure, you may already have adequate cover. But many people have life insurance that was set up years ago, before a larger mortgage, or that does not account for the current balance. We can review your existing cover and identify any gaps.

What is a decreasing term policy and why is it used for mortgages?

A decreasing term policy is a type of life insurance where the payout reduces over time — broadly in line with a repayment mortgage balance. Because the potential payout reduces each year, the premium is lower than a level term policy for the same initial sum. It is the most cost-effective way to ensure your repayment mortgage is cleared if you die during the term.

Should I add critical illness cover to my mortgage protection?

For most families, yes. You are statistically more likely to be diagnosed with a serious illness during your working life than to die. Critical illness cover pays a lump sum on diagnosis of a covered condition — which can be used to clear or reduce the mortgage while you are still alive and recovering. Adding critical illness cover to a life policy is often more affordable than taking out two separate policies.

What happens to my mortgage if I cannot work due to illness?

Your mortgage repayments continue regardless of whether you are working. If you cannot work due to illness or injury, income protection pays a monthly income that can cover your mortgage repayments. This is particularly important for the self-employed, who have no employer sick pay to fall back on.

Can I get mortgage protection if I have a pre-existing health condition?

In most cases, yes. Some conditions may result in a higher premium or a specific exclusion, but many people with pre-existing health conditions can still get meaningful mortgage protection. As a whole-of-market broker, we identify the insurers most likely to offer fair terms based on your health history.

Do I need mortgage protection if my employer provides death-in-service benefit?

Death-in-service benefit pays a multiple of your salary if you die while employed — typically two to four times your annual income. For many families, this is not enough to clear a mortgage, and it disappears entirely if you change jobs or are made redundant. It is not a substitute for dedicated mortgage protection.

Explore our other protection services

Written by Ben Tomlin — Financial Adviser, That’s Family Finance (a trading style of RB Ame Ltd).
Qualifications: Level 4 Diploma in Financial Advice · Level 3 Certificate in Mortgages & Protection · Level 3 Certificate in Equity Release.
FCA Individual Reference Number: BXT01420 · Last reviewed: August 2026.

Important information: That’s Family Finance is a trading style of RB Ame Ltd, authorised and regulated by the Financial Conduct Authority (FCA No. 1038034). Independent. Whole-of-Market. Family Protection Specialists. Our permissions cover protection insurance only (life insurance, critical illness cover, income protection, and related products). We do not provide mortgage advice, pension advice, or investment advice. Where we introduce clients to mortgage advisers, equity release specialists, or other financial professionals, those introductions are to separately FCA-authorised firms who provide advice in their own right. Your home may be repossessed if you do not keep up repayments on your mortgage.