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Mortgage Life Insurance

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Mortgage life insurance, also sometimes known as decreasing term life insurance, is designed to help your family pay off the mortgage should you pass away. It can give you and your loved ones peace of mind, knowing they will not be in financial trouble if the worst happens. It is a common consideration when you buy a house, and can be used to pay off a repayment mortgage.

It is important to note that mortgage life insurance is not suitable for an interest-only mortgage. 

Do I need mortgage life insurance?

Mortgage life insurance can provide a pay-out if you were to pass away within the contract term. It is a helpful policy to have if your partner or other dependents could not afford the mortgage without your income. 

When you buy your home, your mortgage lender may offer to sell you life insurance cover. However, it is important to remember you are under no obligation to buy it from them. Consider the different policies available to you and compare quotes with Caspian Insurance before making a final decision on mortgage life insurance. 

If you already have level term life insurance, you might still need mortgage life insurance as well. Our UK advisors are on hand to help you if you are not sure which cover is right for you.

How does mortgage life insurance work?

Mortgage life insurance cover will decrease over time, in line with your repayment. As you continue repaying your mortgage, the amount of cover will reduce. It is for this reason that the cover is also known as decreasing term life insurance.

The duration of your mortgage life insurance will usually align with the mortgage term. If you have a 25-year mortgage, the policy will last for at least this amount of time. Should you pass away during that term, the insurance policy will pay off your mortgage with a lump sum.

What is the difference between mortgage protection and life insurance?

Both types of cover are designed to pay out a cash sum, should you pass away during the length of your policy. They can be used to help your loved ones and provide financial support during a very difficult time.

The difference between mortgage protection and life insurance is that they are designed with different purposes in mind. For instance, you may want life insurance cover to help your family with financial matters such as everyday living expenses or funeral costs. On the other hand, you might want to take out life insurance specifically to cover the cost of your mortgage, because your partner would struggle to meet the amount without your income.

It is very dependent on your circumstances and how you want to help your loved ones. If you have a repayment mortgage, you should consider taking out mortgage life insurance. It is not suitable for an interest-only mortgage.

At Caspian Insurance, we can help create a tailored policy that meets your individual needs. We offer specialist support and guidance to help you understand how the different policies work.

What is the average cost of mortgage life insurance?

You can choose the amount of cover you need, and how long you will need it for. It is important to remember that your mortgage life insurance cover will cover the amount left on you mortgage. 

Mortgage life insurance is the cheapest type of life insurance you can buy because the amount of cover you need reduces over the years. Our expert team can search the market for you, making sure you have the right policy at the right price.

What are the benefits of having mortgage life insurance?

Mortgage life insurance is the perfect type of cover if you want to help your loved ones pay off the mortgage specifically. If you know that your partner will struggle to make the repayments, mortgage life insurance is the best solution to help relieve that financial burden.

It is the most cost-effective way to protect your mortgage, giving you peace of mind that your family can still afford to live in the home they love.

Do you need both life insurance and mortgage protection?

The life insurance cover you need can depend hugely on your circumstances. Both life insurance and mortgage protection cover can help your family pay off the mortgage. However, mortgage protection is designed solely to cover the cost of your mortgage. If you would like to protect your family further by ensuring there is money to pay the bills and cover everyday expenses, you might also benefit from taking out a life insurance policy.

You may choose to supplement your mortgage protection with level term life insurance, which can mean the mortgage payments are taken care of, as well as extra financial support.


Please note that the descriptions above do not constitute as financial advice and may change dependent on individual circumstances and budgetary requirements.

For quick and easy quotes, please get in touch on 0161 241 6146 and one of our friendly and knowledgeable advisors will be able to help.

Why Choose Caspian Insurance?


Save Time & Money

With a helping hand along the way, we search the market for you to secure the right policy at affordable prices.



Our extensive industry knowledge means we can provide you with the best policy options for your life protection.


UK Based Advisors

No call centres, no jargon. Just a team of experienced advisors dedicated to providing a customer centric approach.


Tailored Policy

With a custom-made policy, you will be confident in the knowledge that your loved ones will be taken care of in the worst-case scenario.


Free Trust Service

Receive specialist support and guidance via our free trust service for a clear understanding of how different policies work.


Exclusive Broker Benefits

We do the hard work for you to ease the underwriting process and compare a wide range of insurers in line with your best interests.

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