Life insurance is not a legal requirement for a mortgage, but it is arguably the most important financial protection a homeowner can buy. If you die during the mortgage term, the payout clears the debt and your family keeps the home.\n\nDecreasing Term Life Insurance — The most common type for mortgage holders. The payout reduces over time, roughly in line with your outstanding mortgage balance. Because the potential payout decreases each year, premiums are lower than level term. A 250,000 decreasing term policy over 25 years for a healthy 35-year-old non-smoker costs approximately 8 to 15 pounds per month. This is the most cost-effective option if your sole concern is clearing the mortgage.\n\nLevel Term Life Insurance — The payout stays the same throughout the policy term. If you take 250,000 of cover for 25 years, your family receives 250,000 whether you die in year 1 or year 24. Premiums are higher than decreasing term because the risk to the insurer is greater. A level term policy is better if you want to provide for your family beyond just the mortgage — the excess above the outstanding balance provides additional financial support.\n\nJoint vs Single Policies — A joint life policy covers two people and pays out once (on the first death). It is cheaper than two single policies but only pays once. After the first death, the survivor has no cover. Two single policies cost more in total but provide independent cover for both lives. If one partner dies, the other receives the payout and retains their own policy. For families, two single policies are generally better value despite the higher combined premium.\n\nHow Much Cover — At minimum, cover the full mortgage balance at the time of purchase. Consider covering more if your partner would struggle with bills and childcare on a single income. Factor in any other debts, funeral costs, and a financial buffer. Many advisers recommend cover of the mortgage balance plus 2 to 3 years of household income.\n\nCritical Illness Add-On — Many life insurance policies can include critical illness cover for an additional premium. This pays out if you are diagnosed with a specified serious illness (cancer, heart attack, stroke, and others). The payout can clear the mortgage while you are alive, removing financial pressure during treatment. Adding critical illness roughly doubles the premium but provides protection during your lifetime.\n\nWhen to Arrange — Ideally during the mortgage application process. Some lenders offer life insurance through their own products, but you are under no obligation to accept. Shopping around almost always produces a cheaper premium. Comparison sites like Compare the Market, MoneySupermarket, and GoCompare list policies from major providers including Aviva, Legal and General, Royal London, Scottish Widows, and Zurich.\n\nWhat Happens Without Cover — If you die with an outstanding mortgage and no life insurance, your estate must repay the debt. If there are insufficient assets, the property may need to be sold. Your partner or family would need to qualify for a mortgage in their own name to keep the home, which may not be possible on a single income. For the cost of a modest monthly premium, this risk is entirely avoidable.