Critical illness cover
Add-on to life insurance which pays out if you are diagnosed with a serious illness.
Mortgage life insurance
Compare Mortgage life insurance
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What is mortgage life insurance?
Mortgage life insurance refers to a life insurance policy designed to provide financial protection for your mortgage in the event of your death.
Mortgage life insurance is usually sold as a decreasing-term policy, meaning that the amount that will be paid out decreases over time. This is because as you pay off your mortgage you’ll need a smaller lump sum payout to cover the remaining debt.
How does it work?
You’ll pay fixed premiums over a set time period, but the amount of insurance cover you'll have will decrease as you pay off your mortgage.
If you die or become terminally ill during the policy term, the insurer will make a payout that can help cover the remaining balance on your mortgage, so your loved ones can keep the home if they wish to.
When won't it pay out?
Mortgage life insurance will only pay off your mortgage in the event of their death. It won’t pay out
if you have a serious illness
if you aren’t able to make your mortgage payments due to unemployment
In these situations, mortgage protection insurance, critical illness cover, or income protection insurance would be more suitable.
Is it the right life insurance for me?
27.68%
Other policy types such as level-term cover can also be used to protect your mortgage and can provide for other expenses as well.
Do I need life insurance to take out a mortgage?
You do not need to have life insurance for all mortgages. But some lenders will insist you take it out.
Life insurance means that should the worst happen to you:
Your loved ones can stay living in the family home
Your family will be spared the stress and expense of meeting mortgage payments without your income
More of your estate and bequeaths will go to your beneficiaries (debts have to be paid off first)
What are the main types of life insurance cover?
MoneySuperMarket offers two main types of life cover that can cover your mortgage.
Decreasing term
Decreasing-term life insurance policies have a payout that decreases over time, ending when the lump sum payout reaches zero. People often use these policies to cover their mortgage and decrease them to match the rate at which they pay off the loan.
Advantages
Usually more cost-effective premiums than other policies
Aligns with specific debts such as your mortgage
Disadvantages
A decreasing payout may leave beneficiaries without cover for other financial needs
Cover is aligned with your mortgage repayments so less flexibility for changing financial goals
Level term
Level term policies have a fixed pay-out that stays the same for the whole policy. No matter when during the policy you pass away, your beneficiaries will always receive the full amount.
Advantages
You know how much your policy will pay out to your loved ones
Can cover your mortgage as well as your beneficiaries
Disadvantages
More expensive premiums, which could be a consideration for those with tighter budgets
Potential for over-insuring if financial needs decrease over time
What impacts the price of mortgage life insurance?
Your age
The older you are, the more expensive your premiums are likely to be because there is a higher risk of a claim being made on the policy.
If you smoke or vape
How dangerous your job is
If your job involves substantial hazards or poses a risk to your health, it's likely to increase the price of your policy. If you are a firefighter, for example, your premium is likely to be higher than someone employed as a librarian.
Mortgage amount
The higher the outstanding mortgage balance, the more your policy will cost
Policy length and level of cover
A policy which offers a bigger final payout will generally require bigger payments from you.
Prices are also linked to the expected length of the policy, with a shorter policy usually requiring higher premiums.
Comparing quotes
Since different insurance providers offer differently-priced policies, shopping around is one of the most effective ways to save money and find the best deal for you.
Cheapest price
£7
.30^ a month
Average price
£21
.16^ a month
How much life insurance do I need?
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Oops! Your current cover is more than enough to cover these payouts.
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Let's give you a life insurance cover quick quote. Just pop in a few details to get started.
Some factors to think about:
Current earnings: Evaluate your current income and think about how much of it you'd need to maintain your lifestyle if you were unable to work.
Outgoings: Look at bills and essential expenses to see how much you spend
Mortgage and debts: Take into account what you'd need to cover or pay these off
Budget: You want to be able to afford your premiums over the whole policy term
What is the difference between life insurance and mortgage life insurance?
The main difference between life insurance and mortgage life insurance is the type of protection it provides:
Life insurance
Designed to protect your family financially if you die during your policy term. It pays out a lump sum cash amount that your beneficiaries can spend on anything, including:
Bills
Education fees
Mortgage costs
Funeral costs
Mortgage life insurance
Specifically for helping pay off an outstanding mortgage if you die within your policy term.
This type of cover typically reduces over time because your mortgage decreases as you make payments.
What are the other types of life insurance?
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Joint life insurance
A single policy to cover two individuals. Will pay out once either after the first or second death.
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Life cover with medical conditions
Pre-existing conditions need to be declared to your insurer.
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Over 50s life insurance
A whole of life policy with guaranteed cover and payouts.
Our expert says…
One benefit of life insurance is that it can protect our loved ones from struggling to afford the bills when we die. Few bills are as big as our mortgage - a big pile of debt that is getting even bigger for new homeowners as house prices rise and interest rates stay high.
Government data shows that in the first quarter of 2025, the average UK house price hit £271,415 and the average 2-year fixed mortgage rate was 4.43%.
Kara Gammell Personal Finance & Insurance Expert
Why compare mortgage life insurance quotes with MoneySuperMarket?
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We're also the UK's most recommended price comparison website
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Free shopping gift card
Get up to £400^ to spend on a variety of retailers when you buy life insurance through MoneySuperMarket.
Found the perfect policy to safeguard your family's future? Have an extra reward on us.
Gift cards start at £35 for life insurance policies with monthly premiums of £10 or less and go up to £400 for policies with monthly premiums over £90.
See our terms and conditions for more information.
Restrictions apply. One voucher per person. Not available to customers who previously received a voucher with a life insurance policy purchased after 1st May 2022. Offer end date 29th Dec 2025
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Once you've found the policy that's right for you, all it takes is a click through to your chosen provider to buy your policy today for the price you see.
Prefer to speak to someone about life insurance?
We’ve partnered with LifeSearch to give people even more guidance when buying life insurance. If you’d like some help deciding what kind of cover you need, talk to LifeSearch free of charge.
Give them a call on 0800 197 3178.
Opening hours are:
Monday to Friday 8 am to 8 pm
Saturday 9 am to 2 pm
Sunday 10 am to 3:30 pm
Am I eligible for mortgage life insurance?
If you’re over 18 and a UK resident you will generally be eligible for mortgage life insurance. However, some insurers may impose an upper age limit or refuse to cover people with certain medical conditions.
Is mortgage protection insurance the same as mortgage life insurance?
No, mortgage protection insurance is not the same as mortgage life insurance. Mortgage life insurance pays out a lump sum if the policy holder dies. Mortgage protection insurance covers mortgage payments if the policy holder is unable to work due to illness, injury, or unemployment.
Can I get mortgage life insurance on an interest-only mortgage?
Yes, you can get mortgage life insurance on an interest-only mortgage.
You should keep in mind that with an interest-only mortgage, the amount you owe doesn't decrease over time, while mortgage life insurance reduces the payout over time. For this reason, a level-term life insurance policy might be more suitable if you have an interest-only mortgage.
When should I review my mortgage life insurance policy?
Whenever you make a change to your mortgage or your personal circumstances change, it is a good idea to review your policy to ensure it still suits your needs.
Can I cancel my life insurance policy?
Yes, you should always be able to cancel your life insurance policy, or remove yourself from a joint policy.
There may be a cancellation fee. You won’t get the premiums you have already paid back.
Do I get my money back if I finish paying my mortgage?
No. If you live past the term of your insurance policy, the money is gone.
You can buy what’s known as whole-of-life insurance or life assurance, which has no term and will pay out whenever you die, but it’s more expensive.
Will I have to pay tax on a mortgage life insurance pay out?
Payouts are not directly taxed, but life insurance can be subjected to inheritance tax unless the policy is written in trust, keeping them outside of the estate for inheritance tax purposes.
If the payout is not in a trust, it becomes part of the deceased's estate and could be subject to inheritance tax if the estate exceeds the £325,000 threshold.
What happens to mortgage life insurance when a mortgage is paid off?
If you have a decreasing-term mortgage life insurance policy that lines up with your anticipated mortgage term then the policy will usually end when the mortgage is paid off.
If you pay off your mortgage earlier than anticipated, the policy will continue for the agreed term. You may wish to keep the policy, as your loved ones will still receive a payout if you die. You can also cancel the policy if you wish.
Do I need life insurance if I don’t have a mortgage?
Whether or not you need life insurance if you don't have a mortgage depends on your individual circumstances. Even if you don't have a mortgage, a life insurance policy may prove worthwhile if you have loved ones who rely on your income.
What happens to a mortgage if you don't have life insurance?
If you don't have life insurance, the mortgage debt will be passed down to your next of kin. They can decide whether to keep paying the monthly repayments or sell the house to contribute towards paying off the mortgage.
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Why should I use a price comparison website?
One of the best ways to get the lowest prices and best deals is to compare quotes from different companies. We do the work for you, comparing quotes side-by-side and giving you all the information you need so you can choose the right deal for your needs and your wallet.
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Does MoneySuperMarket work with all the providers on the market?
No, not every company can be included in our service. This is because some companies don’t want their products included on comparison sites, and some decide that they would rather not pay a fee. There are also a few smaller providers who can struggle to cope with the volume of customers that can find their products if they appear on MoneySuperMarket.
Our goal is to search deals from as wide a range of companies as possible so that you can choose the deal that suits you.
Is life insurance eligible for SuperSaveClub and rewards?
No, at this time life insurance is not an eligible product for unlocking our SuperSaveClub rewards. It is also not included in our Price Promise.
Reviewed on 22 Dec 2025 by
Data based on the 10th Percentile price of life insurance sold through MoneySuperMarket for decreasing cover in December 2025.
YouGov Survey 1st July 2024 to 30th June 2025. Net Recommend score derived from “Which of the following online service websites would you recommend to a friend or colleague, or tell them to avoid?” Base: Current Customers of (MoneySuperMarket n=18,382, Compare the Market n=16,802, Go.Compare n=10,162, Confused.com n=8,229, Uswitch n=528).
Shopping Gift Card value varies based on the first monthly premium of the policy and will be confirmed on the results page
The number of providers for life insurance in November 2025
Data based on the median price of life insurance sold through MoneySuperMarket for decreasing cover in December 2025.