Do you need Life Insurance for a mortgage? Is it compulsory?

I’m looking to take out a mortgage, but can I get one without getting Mortgage Protection Insurance? What happens to my mortgage if I die and don’t have Life Insurance?

Question asked by Ben Pound
Compare Top 10 UK
Takes approx. 60 seconds
Type of Policy
Level of Cover
Date of Birth
Loading your options...
Thank you for using our Quote Tool
If you need some help, just call us!
T: 02084327333
Our in-house Experts are here to provide FREE impartial advice!
Our Experts can answer all your questions
Our Experts can send you more appropriate options based on your personal circumstances

Very important if you are either Self-Employed or a Company Director.

Our online quote tool is good but our Experts are better

Oue Experts have access to far more insurers and can often find a better deal offline.

Saves you time, let our Experts do what they are best at

Answered by Tom Conner

Although it usually makes sense to consider taking out Life Insurance to cover your mortgage loan, it is not normally compulsory. Provided you pass the affordability tests, you can still get a mortgage from a lender regardless of whether you have insurance.

However, even if it isn’t compulsory, there are some very good reasons to purchase protection for your mortgage, particularly if you have a family or are the main contributor to mortgage repayments in your household.


What is Mortgage Life Insurance For?

If you pass away without paying off your mortgage and do not have Life Insurance to cover the cost, the lender / bank would be able to reclaim the remaining loan amount from your personal estate. If you don’t have the funds to pay off the loan, the property may have to be sold to repay the debt. Alternatively, your family may have to keep paying the monthly repayments to stay living in the home.

If you want to pass on your home to your loved ones without passing on your debt, a Life Insurance policy can cover what’s left of the loan. A Life Insurance policy will pay out a lump sum that is typically set at equal value to your mortgage so that the whole loan can be paid off in one go, leaving your loved ones free of a mortgage if you pass away.


Why You Might Need Mortgage Life Insurance

You have no obligation to purchase a Life Insurance policy when you take out a mortgage, but if you have a family or loved ones that you hope to leave your home to after you die, you might want to consider purchasing a policy anyway.

With the payout from a Mortgage Life Insurance policy covering what’s left of your mortgage debt, your loved ones can stay in their home and don’t have to worry about keeping up with repayments.

If you have taken out a joint mortgage with your spouse or partner, you might consider taking out a Joint Life Insurance plan instead of a standard plan that will only cover one policyholder. This type of policy would pay out a lump sum if either partner passed away to cover the mortgage.


What Other Insurance Might You Need?

A Mortgage Life Insurance will help your loved ones cover the mortgage if you die, but that still leaves the risk of you being unable to meet your mortgage repayments while you are alive.

If you are unable to work due to illness or injury, your reduced income means that it will be more difficult to meet your mortgage repayments. To combat the risk of this happening there are insurance products like Critical Illness Insurance and Income Protection Insurance. These will pay out either a lump sum or monthly benefits to help you cover the cost of your mortgage.

If you are interested in protecting your mortgage for the sake of yourself as well as your loved ones, you have the option to take out a combined Life and Critical Illness Mortgage Protection policy. This will pay out a lump sum to cover your mortgage debt if you are diagnosed with a critical illness, diagnosed with a terminal illness, or if you pass away before you have paid off your mortgage. Buying a combined policy is usually more cost effective than buying the two products separately.

Robert Harvey, Independent Protection Expert at Drewberry

There are a range of insurance products to help you and your loved ones protect important financial commitments like a mortgage and there are a lot of policy options to choose from to help you find one that best matches your needs.

If you’re interested in learning more about available or getting quotes from the top UK insurance providers, contact us today on 02084327333.

Robert Harvey
Head of Protection Advice at Drewberry

Mortgage Life Insurance
Mortgage Protection Insurance
Life Insurance
This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
Compare Top 10 UK Insurers
  Takes approx. 60 seconds
Need help? 
Call us on 

Frequently Asked Mortgage Protection Insurance Questions

For mortgage protection do you need critical illness cover? Is it worth taking out this type...
I’ve got two houses, one of them I live in and the other I rent out. Is it okay to have a mortgage...
I took out mortgage insurance with my bank alongside my mortgage but wanted to review this cover as I’ve...
I want to take out critical illness insurance to cover my mortgage but is there decreasing term critical...
Need Help? Live chat now and get an instant answer from our Experts...


Our Latest Reviews
Kevin Ballinger

Excellent service. Well documented and prompt meetings arranged, with polite reminders. Good, clear advice and excellent product choice for me. Very pleased and highly recommended.

Kylee Kelly

Jake and Jack and Drewberry were excellent and I would definitely use their services again. We purchased life insurance from them and we are now getting them to look into income protection cover for us. They are very knowledgeable and the set up was a breeze.

Priyadharshini Westphal

Really personalised service. Would definitely recommend. Very helpful and not pushy. Oliver was through and lovely to speak to.

We are rated 4.9/5 based on 1742 independent client reviews.
To read more of our independent client reviews click here →
4.92 / 5 Average
1916 Reviews
Verified Buyer
Overall Rating
The whole process was a pleasure. Drewberry we're easy to deal with, polite, knowledgeable and helpful
Verified Buyer
Overall Rating
Very good, clear service would recommend to friends and family
Overall Rating
Sam Carr provided an efficient and professional service.
Verified Buyer
Overall Rating
Sam Carr provided a professional but enthusiastic service and helped make the whole process very straight forward. Goodness knows I have been through enough application forms recently. My insurance product was never going to be easy to find and I had been rejected on a number of other occasions through others ironically due to well managed common health conditions. I identified Drewberry in a last and disappointing trawl on th web to find someone that actually wanted to take on a difficult case like me. Some brokers wouldn't even consider me. When we applied for my first choice product Sam wasn't at all deterred by the long wait for my GP report or the final rejection that came back from the insurer, sadly I have become used to it. Within a day he had lined up the second choice and to my surprise he had hit the nail on the head and introduced me to the correct insurer and terms for my needs whilst nogotiating an excellent premium. I am extremely satisfied with what Sam has achieved for me and I would have no hesitation in recommending either him or Drewberry to friends, family and and business contacts. In the future, Drewberry will be my first point of contact. Many thanks!
Overall Rating
Tailored to my need and the staff gave very good service