Trustpilot
Show More

Ask an Expert

Do you need life insurance to get a mortgage?

Life insurance policies, especially decreasing term policies, are often taken out by people with mortgages to pay.

These policies offer security that the mortgage will be paid off should the policyholder die before the term ends, and the homeowner’s loved ones aren’t left without a roof over their head. But do you need life insurance to qualify for a mortgage?

Legally, you don’t need life insurance to be approved for a mortgage. However, many lenders will require you have a policy in place as a condition of the loan. This is because they want to ensure they’ll be repaid, even if you should die. 

In these cases, you’ll be advised to take out a decreasing term life insurance policy aligned with your mortgage term and the amount borrowed. If you die during the term, your survivors will receive a pay-out equal to the outstanding balance on the loan, allowing them to pay off the mortgage. 

If you’re taking out a mortgage with a spouse or partner, you can both be protected through a joint life insurance policy. These policies issue a pay-out following the first death and can be cheaper than taking out two single life policies, and it will meet mortgage lenders’ requirements.

Regardless of whether it's required, taking out life insurance is a sensible precaution when you purchase a home with a mortgage. Your mortgage payments will likely make up a large part of your family’s monthly expenses.

With life insurance, those costs can be covered through a regular income or a lump sum paying off the loan. That will ensure your family can continue living in the home after your death and your surviving partner isn’t left to shoulder the debt alone.

Some mortgage lenders will offer to sell you a life insurance policy alongside the loan or direct you to a preferred insurer. However, you’re not obligated to use their recommended provider and you may be able to find a suitable policy for cheaper elsewhere.

Related guides

Life Insurance - Funeral Cover

According to SunLife's annual Cost of Dying Report 2025, passing away currently costs an average of £9,797. Of this cost, the funeral is largest expense, with costs averaging £4,285.Of course, you won't be around to cover the costs, but your family will and it can be a daunting expense, especially as they handle the administrative tasks after a death and cope with grief.A popular way to offset these expenses is to take out funeral cover, an insurance policy that can meet the costs of your final send-off, delivering your family a lump sum payout on your death. Keep in mind that such policies can have certain limitations, such as waiting periods or lower payout amounts. There are several options for 'funeral cover': you can ensure your life insurance policy has sufficient funds for your funeral, take out a specialist whole of life assurance policy for over 50s with the intention of using the payout for your funeral, or purchase a separate pre-paid funeral plan, often linked with an insurance policy. We'll take a closer look at each option, including the advantages and costs, and ultimately how well they can ease your survivors' financial concerns and help you go out in style.

Life Insurance - Do You Need It?

Life insurance provides a financial safety net for for your loved ones in the event of your death. Many people choose to take out life insurance, but it's not a one-size-fits-all solution. The decision to purchase life insurance depends on various personal circumstances, such as family dynamics, financial obligations, and long-term goals. Read on to decide whether life insurance is suitable for you, taking into account your needs to make an informed choice.

Is Vaping Classed as Smoking for Life Insurance?

Vaping is seen as less harmful than cigarettes and is often used by smokers to help them quit their habit. However, that doesn’t mean that vaping is ignored completely by life insurance providers. In fact, in most cases, vaping will likely impact your life insurance policy in a similar way to smoking.In this blog, we’ll cover everything you need to know about vaping and taking out life insurance. We’ll explore the ways that life insurance can be affected by vaping, cover what you need to tell your insurer, and answer some frequently asked questions.