Does life insurance need to match your mortgage?
Life insurance is not directly tied to your mortgage in the way a secured loan is. Your insurer doesn't know which mortgage it's covering — the policy pays a sum assured to your beneficiaries, who can then use it to clear the mortgage or do anything else with it.
See cover from Aviva, L&G, Vitality, Royal London, Zurich and more — side by side, your exact profile.
Get a Free Quote →What happens when you remortgage?
When you remortgage, you typically have three options regarding your existing life insurance:
- Keep your existing policy — if your new mortgage is smaller than your existing sum assured, your current policy may still be adequate. Check the remaining term is long enough.
- Extend or increase cover — if your mortgage has grown or the term has extended, you may need to top up your cover with a new additional policy.
- Cancel and replace — take out a new policy that exactly matches the new mortgage. Be aware that your health may have changed since the original policy, potentially affecting new premiums.
What if I port my mortgage?
Porting (moving your mortgage to a new property) doesn't require you to change your life insurance — the policy is personal to you, not the property. However, if your new mortgage balance is higher, you should review your level of cover.
Frequently Asked Questions
No — you are not required to take out new life insurance when remortgaging. However, it's worth reviewing whether your existing cover still matches your needs.
Yes — your policy is not tied to your mortgage and doesn't need to change when you remortgage. Just ensure the sum assured and term still provide adequate protection.