Life assurance is worth considering for anyone with a mortgage, or with a partner, children or other dependants who rely on their income. It can be arranged alongside a new mortgage, or reviewed at any point afterwards.
Protection & insurance
Life Assurance
If the worst happened, life assurance pays out a tax-free lump sum, or a regular income, to the people who depend on you, so your mortgage and household costs are covered when they need it most.
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The basics
What is life assurance?
Life assurance, also called life insurance, pays out a tax-free lump sum, or in some cases a regular income, to your family or another named beneficiary if you die while the policy is in force. It's usually arranged alongside a mortgage, or to protect a family's income, so the people who depend on you aren't left to cover the mortgage, bills or childcare on their own.
You choose the amount of cover and how long the policy runs when you take it out. Premiums are based on your age, health, the sum assured and the type of policy, and cover in the UK is medically underwritten, so answering health questions accurately matters.
Options available
The main types of life assurance
There's no single "right" policy. We compare these against your mortgage, budget and family circumstances to work out what fits.
Most common for mortgages
Decreasing term assurance
Cover falls broadly in line with a repayment mortgage balance over the term. Usually the cheapest way to cover the mortgage specifically, because the amount at risk falls as the debt does.
Level term assurance
Cover stays the same for the whole term, then ends. Often used for interest-only mortgages, or wherever the financial need won't shrink over time.
Family income benefit
Instead of a lump sum, it pays a regular tax-free income for the rest of the policy term if you die, which can be easier for a family to manage than investing a lump sum.
Whole of life assurance
Cover that runs for your entire life rather than a fixed term, guaranteeing a payout eventually. Often used for inheritance tax planning or funeral costs rather than mortgage protection.
How it works
Getting the right cover in place
Protection is arranged alongside your mortgage application, not as a separate, forgotten task. This is how we handle it.
- 1
A free life assurance review
We look at any cover you already have, and talk through what your family would need if your income stopped.
- 2
Comparing the right policy
We compare providers to match the type and level of cover, and price, to your circumstances and budget.
- 3
Live before you complete
Where cover is linked to a new mortgage, we arrange it to start on the day your mortgage completes, so there's never a gap.
Common questions
Life Assurance questions, answered
It’s not mandatory, but without it your family could be left with the mortgage and no way to pay it if the worst happened. We’ll talk through whether it makes sense for you.
Life insurance pays out on death. Critical illness cover pays a tax-free lump sum if you’re diagnosed with a specified serious illness, while you’re still alive.
Cost depends on your age, health and the level of cover, but policies can often be arranged from a few pounds a month. We’ll compare providers to find an affordable fit.
The main types are decreasing term (cover reduces in line with a repayment mortgage), level term (cover stays the same for a fixed period), family income benefit (a regular income rather than a lump sum) and whole of life (cover for life, rather than a fixed term). We’ll compare these against your mortgage and circumstances to find the right fit.
It depends on your mortgage balance, income, and who depends on you financially. We’ll work through this with you as part of a free review rather than giving you a generic number.
In most cases yes, though the cost or terms may vary. We compare providers who take different views on health conditions to find the most suitable option.
Your policy isn’t tied to a specific property, so it keeps paying out regardless of whether you move or remortgage. If your mortgage amount changes significantly, it’s worth asking us to review whether your level of cover still matches it.
Who this is for
Protecting the people who depend on you
Providers we compare
Whole-of-market, not tied to one insurer
We compare life assurance across the UK's leading providers, including:
Provider panel shown for illustration and reviewed regularly; availability depends on your circumstances and the specific product. Logos are the property of their respective owners and do not imply endorsement of City Mortgage Solutions Limited.
Example scenario
Illustrating how this can help
A worked example of the kind of outcome life assurance is designed for. This is an illustrative scenario, not a specific client, and every case is assessed on its own facts.
Example, not a real client
A young family with a repayment mortgage
A couple in their early thirties took out a 30-year repayment mortgage and, at the same time, a decreasing term life assurance policy sized to match the mortgage balance. A few years later, one partner passed away unexpectedly. Because the cover was already in place and the sum assured still matched the outstanding balance, the surviving partner used the payout to clear the mortgage in full, keeping the family home secure at the point it mattered most, on top of an already difficult time.
- Situation
- New 30-year repayment mortgage, one partner working
- Cover arranged
- Decreasing term assurance matched to the mortgage
- Outcome
- Mortgage cleared in full, family able to stay in the home
Related cover
Other cover you might need
Critical illness cover
A tax-free lump sum if you're diagnosed with a specified serious illness, such as cancer, heart attack or stroke, while you're still alive, giving you space to recover without money worries.
Income protection (PHI)
A regular monthly payment that replaces part of your income if illness or injury stops you working, covering the one thing most people forget to insure: their salary.
Private medical insurance
Faster access to private diagnosis and treatment, so you're not waiting on an NHS list, with the ability to choose where and when you're seen.
Buildings & contents insurance
Cover for the structure of your home, often a condition of your mortgage, and for the possessions inside it.
Business insurance
Protection for self-employed people, contractors and small business owners, and the income their mortgage relies on.
Guides
Life Assurance guides
GuideDo I need life assurance with my mortgage?Weighing up the risk, and what it would mean for your family.GuideHow much life assurance cover do I actually need?A simple way to think about the number, rather than guessing.GuideLife assurance vs critical illness coverWhat each pays out for, and when you might need both.
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