Mortgage life insurance

Cover starting from £9.75 a month*

What is mortgage life insurance?

Mortgage life insurance is specifically designed to ensure your mortgage repayments would be covered if you died or fell seriously ill during the term of the plan.

Our life insurance for mortgages offers either a cash lump sum or monthly payments, offering you peace of mind that neither you or your dependants would have to worry about the repayments.

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Do I need mortgage life insurance?

If you have dependants living in your home, taking out a mortgage protection plan with Life Cover included would mean they could keep their home if you died during the term.

Regardless of whether you have dependants, you could be left struggling to pay off your repayments if you couldn't work due to injury or illness.

Serious Illness Cover or Income Protection Cover can help alleviate this concern by paying either a lump sum or monthly tax-free income so you can keep your home and focus your attention on recovering.

Mortgage life insurance benefits

✓ We offer temporary cover for before your mortgage starts as you might be legally committed to loan before you start paying it back

✓ Our Vitality Optimiser will be automatically added, this offers you access to partners and rewards, an upfront discount for your first year and the ability to keep this discount for making healthy lifestyle choices

✓ The ability to increase the cover, or change the term of the plan without giving us more information

✓ If you add Serious Illness Cover to your plan, you can be confident that you will be covered for more conditions than any other insurer

Why choose us?

Benefit from award-winning mortgage life insurance which rewards you for being healthy

A brand you can trust

In 2018 we paid out 99.8% of Life Cover claims¹
Discounts and rewards

Over £81 million given in Vitality benefits and rewards in 2018²
Improve your health

Lower incidence of Life Cover claims in actively involved member³
Free no-obligation advice

Our advisers are highly trained and offer free, expert advice

Cover options

Below are some of the award-winning cover options that we offer. We give you the flexibility to tailor your plan so you and your dependants will have everything you need to cover your mortgage repayments.

Life Cover

With life cover, your dependants will receive a one off sum if you die during the term. You can adapt the level of cover to the type of mortgage you have so you are only paying what’s necessary in monthly premiums.
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Income Protection

Receive a regular tax-free monthly income if you fall ill, are injured or disabled and are unable to work as a result of illness so you can continue to pay your mortgage repayments.

Our 5-star defaqto rated Income Protection also includes:

Financial support when you return to work, if you return with a reduced capacity and earn less than before you were off work.
An additional payment when you return to work to help you manage with any additional costs.

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Serious Illness Cover

Receive a lump sum if you are diagnosed with a serious illness which can be used to cover your remortgage repayments or any other costs.

Cover is fully protected for lower severity conditions ensuring the full sum assured will always be paid at 100% for conditions such as heart attacks, cancers or strokes, and on death.

In comparison to a typical Critical Illness plan:

We cover over 178 conditions which is more than any other insurer (Defaqto 2018)
Our world-first Dementia and FrailCare Cover is included at no extra upfront cost
We pay out based on how severe your condition is meaning that you could receive a payout at an earlier stage of your illness
7% of Serious Illness Cover claims paid in 2018 were for conditions unique to Vitality

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How does mortgage life insurance work

With mortgage life insurance, you will need to know how much is left on your mortgage and what your monthly repayments are likely to be for the rest of the term. You can then take out life insurance to match the outstanding balance exactly, in result of your death your family would receive a lump sum which they could use to pay off the outstanding balance so they could keep their home. You can also add Serious Illness Cover or Income Protection Cover to your plan to cover you in result of serious illness so you wouldn’t miss any monthly payments and risk losing your home.

What happens to my mortgage if I die?

If you die when you still are paying off your mortgage, the loan still remains and the monthly payments will still need to be made. If you leave the property to family or friends in your will, they will be able to take over those payments, providing they would like to keep the home and funds are available. If you decide not to leave the home to someone or the heir doesn’t want to keep it, it can be sold and the outstanding balance will be paid to the mortgage lender. If the home is worth more than what you owe, the variance will go to the heir.

What is the difference between a mortgage protection plan and life insurance?

A mortgage protection plan works in a very similar way to life insurance but with a plan specifically designed to match the outstanding balance of your mortgage. Most people will have less to pay off as the years go by as they continue to make monthly payments, A mortgage protection plan can reflect this with a decreasing level of cover which often makes monthly premiums cheaper as the pay-out decreases.

Who is responsible for mortgage payments after death?

If the beneficiaries decide to keep the property, they will be responsible for paying the mortgage repayments, or it can be paid by the executer of the will before savings are passed to the beneficiaries. If the outstanding balance is larger than the amount in the estate, the property may need to be sold.

All it takes is a couple of minutes.

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Speak to a VitalityLife adviser for tailored advice.
Lines open:
8am - 9pm Monday to Thursday
8am - 7pm Friday
9am - 5pm Saturday
Closed - Sunday

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Important information

*Starting monthly premium factors in the Vitality or Wellness lite optimiser monthly fee of £1.75 and includes the premium discount.
¹The percentage of claims accepted for Life Cover in 2018 was 99.8% and the total amount paid was £35,492,397
²With VitalityLife's Optimisers which are available at an additional monthly cost of £1.75 for Lite or £4.50 for Full. Source: Vitality internal data, May 2019.
³According to Vitality internal data (2018), over the past five years members who engaged in the Vitality Healthy Living Programme had a significantly lower incidence of Life Cover claims across all age groups when compared to those who did not engage.