Short answer: For a UK mortgage, you typically need life insurance covering the full outstanding mortgage amount. For a £200,000 repayment mortgage, you would buy a £200,000 decreasing-term life insurance policy that reduces in line with your mortgage balance. Premiums for this start around £5/month at age 30 for a 25-year term.
For who: first-time buyers and mortgage holders.
Reviewed by: Ben Darke, lifecoverfor.com · Last updated: 2026-06-03
Reviewed by: Ben Darke, lifecoverfor.com · Last updated: 2026-06-03
Key facts (2026)
| Recommended cover for repayment mortgage | Decreasing term life insurance matching mortgage balance |
| Recommended cover for interest-only mortgage | Level term life insurance matching original loan amount |
| Typical cost for £200k / 25 years / age 30 | £5–8/month decreasing term; £8–12/month level term |
| Joint vs single policies for couples | Joint = cheaper but pays out once; two single policies = more cover but ~30% more cost |
| Should mortgage life cover include critical illness? | Combined decreasing term life + CIC typically adds £8–15/month for the same term |
Sources
lifecoverfor.com adviser panel 2026 pricing.
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