Life insurance for mortgage brokers
Mortgage brokers help their clients arrange one of the most important financial products available — and their own financial protection deserves the same care. Many brokers are self-employed or work on a commission basis, making personal life insurance an essential part of financial planning for those without employer death-in-service benefits.
How much does life insurance cost for mortgage brokers?
Mortgage brokers are classed as preferred risk by most UK life insurers. A healthy non-smoking 35-year-old mortgage broker can typically get £200,000 of level term cover for £12–£22/month.
How much life insurance do mortgage brokers need?
A common starting point is 10 times annual salary, plus enough to cover your outstanding mortgage. Consider your dependants, any outstanding debts, and whether a partner's income alone would cover household costs.
Should mortgage brokers also consider income protection?
Yes — life insurance only pays on death. Income protection covers you if illness or injury prevents you from working while you're alive. For most mortgage brokers, the probability of a long-term illness during your working life is significantly higher than dying. Both products are important parts of a complete financial plan.
Writing your policy in trust
Always consider writing your life insurance in trust. This ensures the payout reaches your beneficiaries quickly without going through probate, and keeps it outside your estate for inheritance tax purposes. It's free to set up.
Frequently Asked Questions
Mortgage brokers are classed as preferred risk by most UK life insurers. For most mortgage brokers, premiums are primarily driven by age, health, and smoking status.
Yes — always disclose your occupation accurately. Some high-risk roles may affect premiums or exclusions.
Most people choose a term that lasts until their mortgage is paid off and their children are financially independent — typically 20–30 years.