Why Renters Need Life Insurance
Mortgage life insurance is specifically designed to repay a mortgage. But renters have other financial obligations that leave dependants exposed:
- Rent: Your family needs to keep paying rent after you die
- Children: Each child needs income support for 15–20 years
- Partner: A surviving partner may be unable to afford rent alone
- Debts: Student loans, car finance, personal loans
Key point: Life insurance for renters is typically cheaper than for homeowners, because you are usually younger when you rent and may need less cover (no mortgage to repay).
How Much Cover Do Renters Need?
A common approach for renters:
- 10× salary for families with children
- 5× salary for couples without children but with shared financial commitments
- Enough to cover 3–5 years of rent as a minimum if you have a dependent partner
What Type of Policy?
Level term insurance is usually best for renters. Unlike decreasing term (designed for mortgages), level term pays the same amount throughout the policy. If you move from renting to buying, you can add mortgage life insurance on top.
Frequently Asked Questions
Yes, if you have dependants. Rent + bills + childcare still need paying.
Level term. Not tied to a mortgage, pays the same throughout the term.