Can I get life insurance to help cover my mortgage?
Yes, although we can’t directly link your policy to your mortgage.
Our life insurance with decreasing cover provides a level of cover that decreases over time, broadly in line with a long-term loan or repayment mortgage. Your premiums stay the same. This cover type is designed to help your loved ones pay off a repayment mortgage if you pass away during the policy term.
Our life insurance with level cover provides an amount of cover that stays the same over time. You choose a lump sum to leave behind for your loved ones, and how long you want your cover to run for. You’ll then pay the same amount each month until your policy ends.
You can choose to make your cover amount increase in line with inflation, so the lump sum won't be worth less in the future. In this case, your monthly payments may rise. The maximum amount your cover can increase by each year is 10%, and your premiums by a maximum of 15%. If you choose not to accept the increase, or if the CPI doesn't increase, your cover and premiums will stay the same.
Level cover might be a good option if you want to help your family continue to keep up mortgage repayments, or to pay off an interest-only mortgage, after you’ve gone.
If you're unsure about which cover is right for you, talk to a financial adviser.