Mortgage life insurance is a life insurance policy designed to help pay off a repayment mortgage if you die during the policy term. How it works: the amount it pays falls over the years, roughly in step with the loan, while the monthly premium stays the same. If you want cover for your own mortgage priced, the form on this page asks for a few details and a broker regulated by the FCA then calls you, free of charge.
The name is looser than it sounds. In UK usage it normally means decreasing term cover, and "mortgage protection" can mean something different again, so this page sets out what the policies actually say. It draws on Legal & General's and Aviva's own documents.
What is mortgage life insurance, and what is it called?
Legal & General's guide (5 August 2026) describes it as "a type of life insurance where the amount of cover decreases over the length of the policy", adding that it is "designed to help protect a mortgage that reduces over time, so it's often used alongside a repayment mortgage." Its Decreasing Life Insurance page (reviewed 1 June 2026) says the product is "often called mortgage life insurance".
So the same policy turns up under several names: mortgage life insurance, decreasing term, decreasing life cover, and sometimes mortgage protection. The last is the confusing one. The same L&G guide warns that "'Mortgage protection insurance' can refer to different things", and gives two:
- A life policy for a repayment mortgage. L&G says this kind "pays out upon death rather than illness or injury, and only pays out once."
- Payment protection. L&G describes a different product that insures monthly mortgage costs if the policy holder is temporarily unable to work, with a maximum payment period of between 12 and 24 months. L&G says it does not offer that one. Whether such cover pays on redundancy is answered in does mortgage protection cover redundancy.
Whether "life insurance" and "mortgage protection" are one purchase or two is the subject of is life insurance the same as mortgage protection. This page stays with the life policy.
Legal & General is explicit that its policy is not tied to the loan. Its product page (reviewed 1 June 2026) says it is designed to help protect a repayment mortgage, yet the guide adds that "Decreasing Life Insurance is designed to help protect but is not directly linked to a repayment mortgage." Whether you need one to get a mortgage has its own page: do I need life insurance for a mortgage.
How does decreasing cover reduce as the mortgage is paid down?
The insurers' documents say the same thing in slightly different ways, and the differences matter for a mortgage.
| Insurer's document | What it says about the falling cover |
|---|---|
| Aviva, Life Insurance Plan policy summary (DA03008) and policy conditions (DA03011), both May 2023 | The summary says the sum insured falls every month, broadly following a repayment loan like a mortgage, on a fixed interest rate. The conditions name the rate as 8%. |
| Legal & General, Life Insurance policy terms (QGI12849, October 2026) | The terms say an interest rate is applied to the policy, which estimates what you repay each month on your repayment mortgage, and the amount you are covered for decreases accordingly. |
Two points follow. First, in both insurers' documents the cover follows an assumed interest rate, not a live link to your loan balance. Legal & General says the rate it uses "will be shown on your Policy Schedule"; Aviva's conditions fix it at 8% and say the schedule shows the cover amount "at each policy anniversary date". Aviva's documents are dated May 2023, but its life insurance page, read in October 2026, still links them as "our current policy terms and conditions".
Second, the policy and the mortgage can drift apart. Legal & General's terms say: "If the interest rate we apply is less than the interest rate that is actually applied to your repayment mortgage, or your mortgage changes, the amount we pay out may not be enough to repay your mortgage in full." It asks policyholders to "check regularly" and to make sure the policy's rate is equal to or higher than the interest rate on their mortgage.
Legal & General's terms allow an increase in cover if "the life insured's mortgage increases because they move house or are carrying out major home improvements", provided the policy started before the life insured's 55th birthday, within limits, and if you tell it "within six months".
Premiums, by contrast, are guaranteed on both insurers' plans: Aviva's summary says so for level or decreasing cover, and Legal & General's terms say guaranteed premiums stay the same unless you change your policy.
What does mortgage life insurance pay, to whom, and when does it not pay?
It pays a lump sum. Legal & General's terms say a lump sum is paid if, before the term ends, the life insured dies or receives a terminal illness diagnosis. Aviva's summary says its plan "will only pay out once", and sets out who receives it: your estate for a policy held by and covering you, the surviving policyholder for a joint policy, and the trustees for a policy held under trust. Legal & General's guide says its joint policies also pay once, on the first death; joint life insurance covers what that means for couples.
How the money is used is up to whoever receives it. Legal & General's FAQ says "It is at the discretion of your beneficiaries how they choose to use the proceeds".
Reasons a claim may not be paid are set out more fully in how term life insurance works. Aviva's summary, for example, lists them under "The policy won’t pay out if:", including that "your policy ends because you haven’t paid your premiums", the death is "outside the policy term", or death is by suicide or intentional self-inflicted injury within the policy's first 12 months. Legal & General says it will not refund premiums you have already paid if a policy is cancelled for non-payment. For tax and trusts on the payout, see is a life insurance payout taxable and what a life insurance trust is.
How does it differ from level term cover?
The central difference is what happens to the sum. Aviva's summary describes level cover as one that stays the same throughout the policy term, where decreasing cover falls. Legal & General's guide says mortgage life insurance is "typically cheaper than a life insurance policy" because "the potential payout is less than standard life insurance, which is fixed". It also notes that some people hold both: "level cover for family protection" alongside decreasing cover for the mortgage. See decreasing term and level term.
How much does mortgage life insurance cost, and what moves the price?
We cannot give a monthly figure, and nobody can honestly do so without your details: no published, dated UK source gives a market price, and quotes depend on the person. An actual figure needs your age, health and mortgage details; sending them through the form on this page lets a broker, authorised by the FCA, compare insurers for you in a single call, and going ahead is your choice.
Legal & General's guide lists "age, overall health, smoker status and alcohol consumption" among the factors, and says whether you can get a policy at all depends on them. Beyond that, a longer term or a larger amount usually raises the premium, and a falling sum usually makes it lower than level cover, as the L&G quote above says. Adding critical illness cover is an extra cost, as L&G's FAQ confirms. More on pricing is in what life insurance costs.
Who takes out mortgage life insurance, and what should you look for?
This is general information, not advice on whether you need cover. People tend to look at it when they take on a repayment mortgage, alone or with a partner. Points worth checking in any policy document:
- The interest rate it assumes against your mortgage rate, and where it is shown (L&G: the Policy Schedule).
- The term against your mortgage term. Limits differ: Aviva's plan can last between one and 50 years, while L&G's Decreasing Life Insurance runs for 5 to 50 years and must end before age 90.
- What happens if the mortgage changes, such as a move or remortgage, and whether the cover can be increased or the policy separated. L&G's terms say a joint policy can be split if one of you takes over an existing mortgage in one name.
- Single or joint, and what the survivor is left with.
- The exclusions and the first-year suicide wording in the terms.
How big the policy should be is the job of the mortgage life insurance calculator guide. Our mortgage cover guide collects the related pages.
Frequently asked questions
Is there such a thing as mortgage protection insurance?
Yes, but the name covers two products, as set out above: a life policy for a repayment mortgage, and payment protection, which covers monthly payments for a limited period if you cannot work.
Can you get life insurance without a mortgage?
Yes. Legal & General's guide says "Life insurance isn’t just for homeowners": a mortgage is one reason people buy cover, not a condition of it.
What happens if I pay off the mortgage early?
The policy carries on unless you cancel it: Legal & General describes the two as "separate products", and its policy pays on a valid claim during the term "whether or not you still have that mortgage or financial commitment in place." Aviva's summary says its policy has no cash-in value and that after the first 30 days you get no money back if you cancel.
How long does mortgage life insurance last?
For the term you choose, within the insurer's limits. Legal & General's terms say you are covered from the policy start date until the policy expiry date, and the policy ends earlier if it pays out or is cancelled. Aviva's summary says there is no payout if the term has ended.
If you would like the options priced for your own mortgage, a few minutes on the form on this page is enough for an FCA-authorised broker to talk them through with you.
Sources
- Legal and General Assurance Society Limited, Life Insurance - Policy Terms and Conditions (QGI12849, October 2026), read 17 October 2026. legalandgeneral.com
- Legal & General, The difference between life insurance and mortgage life insurance (5 August 2026), read 17 October 2026. legalandgeneral.com
- Legal & General, Decreasing Life Insurance (reviewed 1 June 2026), read 17 October 2026. legalandgeneral.com
- Aviva Life & Pensions UK Limited, Life Insurance Plan Policy Summary (DA03008, May 2023), read 17 October 2026. static.aviva.io
- Aviva Life & Pensions UK Limited, Life Insurance Plan Policy Conditions (DA03011, May 2023), read 17 October 2026. static.aviva.io
- Aviva, Life insurance (product page linking the documents above), read 17 October 2026. aviva.co.uk