Do I need life insurance for a mortgage? [2024 Guide] | Reassured (2024)

Your house is most likely going to be your largest asset, so it makes sense to take steps to help protect it.

This can be done by taking out:

• Buildings insurance
• Life insurance
• Mortgage payment protection
• Contents insurance

The only insurance you’re required to take out by law when buying a property is buildings insurance.

Buildings insurance

Buildings insurance will protect you against the cost of repairs if your home were to be damaged.

It covers things such as the structure of your home, the roof, walls and windows as well as any permanent fixtures (such as bathroom suites and fitted kitchens).

Unfortunately, this isn’t something we provide at Reassured.

Taking out life insurance will help to protect your loved ones in the event you were to pass away.

The type of mortgage you have will determine which form of life insurance is most suitable.

Level term life insurance

With level term life insurance, your sum assured (pay out amount) remains fixed throughout the lifetime of your policy.

This means the amount paid out to your loved ones always remains the same, no matter when you pass away (during the policy term).

For this reason, it’s ideal for helping to cover an interest-only mortgage.

Decreasing term life insurance

With decreasing term life insurance your pay out amount will reduce over time.

This makes it ideal for helping to cover a repayment mortgage as your sum assured can reduce inline with your remaining mortgage balance.

At Reassured, we can arrange both level and decreasing term life insurance, so get in touch to secure our best deal.

You may also want to consider taking out:

Mortgage payment protection insurance

Mortgage payment protection insurance (MPPI) provides financial protection should you lose your job, become injured or unwell and can't work.

MPPI will cover your mortgage payments for you for up to a year or until you return to work.

Payments will be made in full unless they exceed the upper limit listed in your policy.

This isn’t something we provide at Reassured.

Contents insurance

Contents insurance is designed to help protect the things in your home (your belongings).

It includes the cost of repairing or replacing damaged possessions in the event of a fire, flood or theft.

Some contents insurance policies also protect your belongings when you’re not in the home (such as your phone or laptop).

Again, this isn’t something we provide at Reassured.