Do You Need Life Insurance for a Mortgage? Is It Compulsory?

To take out a mortgage is it also compulsory for me to take out Mortgage Life Insurance so the bank would get the loan back if I died?

Question asked by Ben Pound

Although it usually makes sense to consider taking out Life Insurance to cover your mortgage loan it is not normally compulsory.

It is important to have a think about how your loved ones would cope with the mortgage debt if you were to pass away.

  • Could they meet the monthly mortgage repayments?
  • Would they have sufficient income to maintain such a mortgage?

Given the cost of Life Insurance if you have a partner or family it is often worth considering irrespective of whether it is compulsory or not.

A simple Mortgage Term Insurance policy would pay out a cash lump sum equal to the outstanding mortgage debt allowing your loved ones to pay off the balance and remain in their family home.

If you are buying a house on your own and do not have a family to protect then Mortgage Life Insurance may not be as important.

If you want to get an idea of the cost of Life Insurance simply pop in your details below and get instant online Mortgage Life Insurance quotes from the Top 10 UK insurers.

Need Help?

We started Drewberry because we were tired of being treated like a number and not getting the service we all deserve when it comes to things as important as protecting our health and our finances. Below are just a few reasons why it makes sense to talk to us.

  • There is no fee for our service
  • We are independent and impartial
    Drewberry isn’t tied to any insurance company, so we can provide completely impartial advice to make sure you get the most appropriate policy based solely on your needs.
  • We’ve got bargaining power on our side
    This allows us to negotiate better premiums for you than you going direct yourself.
  • Benefit from our 5-star service
    We pride ourselves on providing a 5-star service, as can be seen from our 2906 and growing independent client reviews rating us at 4.92 / 5.

I had a great experience with Drewberry, they have a lot of knowledge and expertise with life insurance and income protection and were able to advise me and arrange suitable products. Highly recommend.

Lachlan Mellings
12/08/2020
Reviews.co.uk Logo
Compare Top 10 UK Insurers
Takes approx. 60 seconds
  • £

Or call us on 0208 432 7333

Compare Top UK Insurer Quotes Logos
Contact Us
Head Office & Pensions and Investments
Senator House
85 Queen Victoria Street
London
EC4V 4AB
Personal Insurance & Accounts Payable
Telecom House
125-135 Preston Road
Brighton
BN1 6AF
Drewberry London Office MapDrewberry Brighton Office Map
Our Core Principles
  • 1You Come FirstWe are a client focused business who always aim to put you first.
  • 2We are ExpertsTo provide you with the best advice, we need to know our stuff!
  • 3We are HumanWe are real people with feelings who are here to help you.
  • 4We are ProfessionalProviding a 5-star service requires a professional approach to everything we do.
  • 5We are here to EducateWe don't believe in sales, we are here to educate so you can make informed decisions.
Finalist - Moneyfacts AwardsFinalist - Cover Excellence AwardsHighly Commended - Protection Review Awards
Proud member of AMII (Association of Medical Insurers & Intermediaries)Proud member of Money Advice ServiceProud member of UnbiasedProud member of BIBA (British Insurance Brokers' Association)

If you are unhappy with our service, we have a complaints procedure, details of which are available upon request. If you are unhappy with how your complaint has been dealt with, you may be able to refer your complaint to the Financial Ombudsman Service (FOS). The FOS website is www.financial-ombudsman.org.uk.

Drewberry Ltd is registered in England and Wales. Companies House No. 06675912

Drewberry Ltd registered office: Telecom House, Preston Road, Brighton, England, BN1 6AF. Telephone 0208 432 7333

Drewberry Ltd (Financial Conduct Authority No. 505473) is an Appointed Representative of Quilter Wealth Limited and Quilter Mortgage Planning

Limited, which are authorised and regulated by the Financial Conduct Authority.

Cookie Use

Drewberry™ uses cookies to offer you the best experience online. By continuing to use our website you agree to the use of cookies. If you would like to know more about cookies and how to manage them please view our privacycookie policy.