Does Life Insurance have to be associated with a mortgage?

No it does not. Many policies are used to provide additional financial security for the family.

STEP 1 of 2
Type of cover
Life Insurance       Mortgage Life Insurance
 
Cover Level (£)

Number of years
Do you want:  
Critical illness cover
Family income benefit
 

Hot Topics

What do you need to know about Life Insurance?
Life Insurance pays out a tax-free lump sum if you die; there is no investment value.
Does Life Insurance have to be associated with a mortgage?
No it does not. Many policies are used to provide additional financial security for the family.
How long should you insure for?
For mortgage protection purposes you should also insure yourself for the same number of years that are remaining on your mortgage. The initial sum insured should always equal the capital sum outstanding on your mortgage.
Should you have a “Guaranteed” or a “Reviewable” policy?
With a Guaranteed policy your insurance company Guarantees never to increase the premium at any time during the policy’s term.
Should you include Terminal Illness Insurance?
You probably won’t need to - most policies include Terminal Illness cover free of charge on all Life and Critical Illness policies.
Many people consider Life Insurance to be a vital aspect of financial protection. Many people simply want it to help provide a tax-free lump sum for their family or relatives if they were to die. This provides some financial peace of mind if the worst were to happen.

Whilst there is no legal requirement to protect a mortgage with Life Insurance, it nevertheless makes great sense. The insurance is there to repay the mortgage lender if the mortgage holder were to die. Sometimes it is one of the mortgage lenders conditions that you take out Life Insurance to cover a mortgage.

Frequently Asked Questions related to the above topic.
Click below if you wish to read them: -