Mortgage Protection
Mortgage protection insurance, often called mortgage life insurance, is a form of term life cover designed to ensure your mortgage or any long-term loan is repaid if you become terminally ill or pass away.
This type of policy provides peace of mind by protecting your family from the financial strain of keeping up with mortgage payments. It helps ensure your loved ones can remain in their home without added worry.
You might also hear it referred to as mortgage protection life insurance, decreasing term life insurance, or decreasing life cover — all of which describe the same type of protection.
Types of Mortgage Insurance Cover
Decreasing Term Insurance
Best suited for repayment mortgages, this cover gradually reduces over time to match your outstanding loan balance, ensuring your mortgage is fully protected as you pay it off.
Level Term Insurance
With this option, your cover amount stays constant throughout the policy term. It only changes if you make a claim or adjust your plan, providing steady protection for the full duration.
The Importance of Mortgage protection
Financial Security for Loved Ones
Mortgage protection ensures your family can pay off the mortgage if you pass away or become seriously ill, preventing them from losing the home.
Affordable and Flexible Cover
You can choose between decreasing term (matches your mortgage balance) or level term cover, depending on your mortgage type and budget.
Peace of Mind
It provides reassurance that your home will remain secure, even during unexpected life events like death, illness, or job loss.
Optional Add-Ons
You can include critical illness or income protection to cover additional risks, offering wider financial safety for your household.
Documents Required for Mortgage Protection
To process your mortgage protection application smoothly, you will need to provide several documents. These may vary depending on your employment status and personal circumstances
Proof of Identity
Valid passport
UK or EU photocard driving licence
National identity card (if applicable)
Proof of Address
Recent utility bill (within 3 months)
Bank or building society statement
Council tax bill
Mortgage or tenancy agreement
Proof of Income
Latest 3 months’ payslips (for employed individuals)
P60 form (annual tax summary)
For self-employed: SA302s or HMRC tax returns and business accounts (1–2 years)
Bank Details
Account details for direct debit premium payments
Medical and Health Information
Details of past and existing medical conditions
Current medications or treatments
Mortgage Details
Mortgage offer or agreement
Property address and loan amount
Lender’s name and mortgage term
Things to Consider
Type of Cover
Decide whether you want life cover only, or to include critical illness and income protection for full security.
Level of Cover
Ensure the payout is enough to repay your mortgage or cover monthly payments if you die or can’t work.
Cover Type Matching Mortgage
Choose decreasing cover for repayment mortgages (balance reduces over time) or level cover for interest-only mortgages.
Policy Term
Match the policy length to your mortgage term so you’re protected until the loan ends.
Health and Lifestyle
Your age, health, smoking habits, and job type affect cost and eligibility — be honest when applying.
Exclusions
Check what’s not covered — like pre-existing conditions, redundancy, or certain illnesses.
Premium Type
Choose between fixed premiums (stay the same) or reviewable premiums (can increase).
Joint or Single Policy
If you have a partner, a joint policy can pay out once for both lives, or you can take individual cover for more flexibility.
Find Out Answers Here
Consider how your finances would cope if your income suddenly stopped. Mortgage protection insurance can help if losing work would make it hard to pay your mortgage or if you’re self-employed without sick pay — protecting you from missed payments or losing your home.
By paying a monthly premium, mortgage insurance provides regular income if you can’t work due to a covered reason. Benefits usually last 6–24 months, with payouts capped at either £1,500–£2,000 per month or about 65–75% of your gross income.
Mortgage payment protection insurance is available at three levels of cover. Accident and sickness cover helps pay your mortgage if you can’t work due to illness or injury. Unemployment cover provides an income if you’re made redundant. For the most complete protection, accident, sickness, and unemployment cover combines all three, supporting you if you lose your job or become unable to work.