Mortgage Protection Insurance
Ensure your mortgage is paid and your family keeps their home — whatever happens.
Your home is likely your most significant financial commitment. Mortgage protection insurance ensures that if you die or suffer a critical illness during the mortgage term, the outstanding balance can be repaid — so your family does not face the prospect of losing their home at an already devastating time. We search the whole market to find the right type of cover, the right level of cover, and the most competitive premium for your circumstances.
What is Mortgage Protection Insurance?
Mortgage protection insurance is life insurance specifically designed to repay your outstanding mortgage balance if you die during the mortgage term. For a repayment mortgage, it is most commonly arranged as decreasing term insurance — where the sum insured reduces over time in line with the outstanding mortgage balance. Because the potential payout decreases as the mortgage is repaid, premiums are typically very affordable. For an interest-only mortgage, level term insurance is more appropriate, as the outstanding balance does not reduce. Mortgage protection can also include critical illness cover — ensuring the mortgage is paid if you are diagnosed with a serious illness such as cancer, heart attack, or stroke, not just if you die. Many lenders recommend mortgage protection when you take out a mortgage, but they are not always independent — we search the whole market to find the most suitable and competitive cover.
Who is it suitable for?
Key Benefits
Real-World Examples
First-time buyers — joint decreasing term policy
A couple buy their first home with a £280,000 repayment mortgage over 25 years. They take out a joint decreasing term life insurance policy, written in trust. The monthly premium is modest. If either partner dies during the mortgage term, the policy pays out the outstanding balance — ensuring the surviving partner and any children can remain in their home.
Adding critical illness cover
A homeowner with a £350,000 repayment mortgage adds critical illness cover to his mortgage protection policy. Five years later, he is diagnosed with bowel cancer. The critical illness element of the policy pays out the outstanding mortgage balance, removing the biggest financial pressure from his life and allowing him to focus entirely on treatment and recovery.
Interest-only mortgage — level term cover
A homeowner has a £400,000 interest-only mortgage. Because the outstanding balance does not reduce over time, decreasing term insurance is not appropriate. A level term policy is arranged for £400,000 over the mortgage term. If the homeowner dies, the full mortgage balance is repaid — regardless of when during the term the death occurs.
Remortgage — reviewing existing cover
A homeowner remortgages to a larger property, increasing their mortgage from £200,000 to £350,000. Their existing mortgage protection policy only covers the original balance. We review their cover, arrange a new policy for the increased amount, and ensure the term aligns with the new mortgage. The additional cover costs less than they expected.
Frequently Asked Questions
Request Your Relevant Life Quote
Find out if your business protection is adequate, correctly structured, and as tax-efficient as it could be.
Why Choose JK Insurance Brokers?
- Whole-of-market access — all leading insurers
- FCA authorised & regulated (FRN 1047042)
- No broker fees — ever
- Business protection specialists
- Personal, one-to-one service with Tom Dobbe
- UK-wide advice by phone or video call
- Ongoing reviews as your business grows
Speak Directly to Tom
I help company directors and business owners protect their families, shareholders and businesses.
01737 333249[email protected]