Do I need life insurance if I'm renting?
Key takeaways
You don’t need to have a mortgage to benefit from life insurance
If you you pass away during the policy term, a life insurance payout can help cover any remaining rental payments, as well as funeral costs, debts and more
Renters could also consider contents insurance and tenants’ liability insurance
Do I need life insurance if I'm renting?
It's not mandatory. However, a tenancy agreement does not automatically end when you die.
If you have a fixed term contract of, say, 12 months or longer rather than a rolling monthly contract that could mean thousands of pounds worth of rent still has to be paid from your ‘estate’ (what is left behind when you die), provided there is enough money. That may mean your loved ones don’t receive as much money as you would like.
Which tenants are
If you live with a spouse or partner and you have a joint tenancy agreement, ask yourself whether they will be able to continue to afford the rental payments if you passed away and they no longer have your financial contribution. This is particularly important if you have children. Just over a third (34% or 1.6 million) households in the private rented sector in England have dependent children, according to the latest English Private Landlord Survey (EPLS).
By having life insurance your dependents could receive a tax-free lump sum if you die during the policy term, giving them a safety net to help cover rent payments and household bills, and ensure they can continue living in the family rental home.
📣 Did you know? The average UK monthly rent for a privately-owned property was £1,335 in April 2025 and had risen by 7.4% over the previous 12 months, according to Government statistics.
Is it common for renters to take out life insurance?
No, renters often mistakenly believe that life insurance is for homeowners to help cover the cost of mortgage payments and therefore don’t take out life insurance cover.
While a decreasing term life insurance policy (also called mortgage life insurance) is primarily aimed at mortgage holders because the amount of cover reduces over time, there are other life insurance products which are more suited to renters and can give you financial protection and peace of mind.
📣 Did you know? In England, almost a fifth (19%) of all households live in a private rental property. The number of households in this sector has risen by 52% between 2008-09 and 2023-24, from 3.1 million to 4.7 million, the English Private Landlord Survey (EPLS) shows.
What are the benefits of life insurance for renters?
In the event of your death, a life insurance payout could cover:
The remaining rent on your tenancy agreement
Funeral costs
Household bills
Debts
Personal loans
Childcare costs
Future expenses such as your child going to university
Leaving a gift for your loved ones or to support a charity
What type of life insurance do renters need?
The right type of policy for you will depend on your personal circumstances but you could consider:
Whole of life insurance, which remains in effect for your entire life, provided your premiums are paid. It’s also known as life assurance or cash value life insurance
Term life insurance, which gives you cover for a set period of time. Term life insurance can be decreasing (payouts go down over time), increasing (they go up) or level (they stay the same).
Level-term life insurance or increasing term life insurance are better options than decreasing term life insurance if you want to cover housing costs. That is because your rent is unlikely to decrease over time in the way a mortgage would.
💡 Top tip: Increasing term life insurance usually moves in line with the rate of inflation, which may help insure the payout matches the cost of living.
Can I get joint life insurance while renting?
Yes, you can get joint life insurance while renting. If you are married, in a long-term relationship or have shared financial responsibility with another person (such as a joint tenancy agreement or shared business) you might prefer to have policy which covers two people under one premium.
Joint life insurance can be cheaper than two single policies but remember that the policy only pays out once if one of you passes away during the term, leaving the surviving partner with no cover. If you have individual policies then you have an extra financial safety net.
How much does life insurance cost for renters?
Monthly premiums for family (level term) life insurance start at just £8.49*. The average cost of these sorts of policies is £25.55*.
The cost of your life insurance will depend on factors such as:
Age
If you have any pre-existing medical conditions
Your family’s medical history
Whether you’re a smoker
How much alcohol you drink
If you’re obese
If you have a dangerous job or hobby
The length of the policy or policy term
Find out how you can reduce the cost of life insurance.
What other insurance should I consider while renting?
You won’t need buildings insurance when you’re renting but it’s a good idea to take out to cover your personal belongings, such as clothes and gadgets, in the event of loss, accidental damage or theft.
Tenants’ liability insurance primarily protects against accidental damage to the rental property, such as fixtures and fittings owned by the landlord. It covers costs that might otherwise come out of your security deposit.
But it doesn’t cover intentional damage, damage caused by pets, and normal wear and tear.
Critical illness insurance is a standalone policy or add-on to life insurance which pays out if you are diagnosed with a serious health issue such as cancer, a heart attack or a stroke. The lump sum payment can be used to cover a variety of costs, from medical treatment to daily living expenses such as rent.
Income protection insurance pays out if a serious injury or illness prevents you from working. It can also cover you for forced (not voluntary) redundancy.
Contents insurance
Tenants’ liability insurance
Critical illness cover
Income protection insurance
Looking for great deals on life insurance?
If you want to buy life insurance, MoneySuperMarket compares lots of different life insurance quotes from different insurance providers in minutes, including level term insurance and critical illness cover to help you find the best cover for your circumstances.
