Cost Of Mortgage Life Insurance

WWW.COSTOFMORTGAGELIFEINSURANCE.CO.UK

Rates last updated: 18 October 2019

The cost of mortgage life insurance is very low for most people in comparison to the overall cost of a mortgage and household running expenses. But a basic mortgage life insurance will provide many borrowers with the peace of mind that their loved ones will not be burdened with financial worries, (like having to pay the mortgage payments on a reduced income), just at the time of bereavement. For most customers setting up a mortgage life insurance is not expensive but should not be overlooked.

Here is a table of the most competitive rates for mortgage life insurance; we have calculated the premiums for non-smokers and smokers across a broad range of ages and mortgage amounts. This will provide some ideas of how much the cover could cost and what might be within your budget. It’s always best to compare mortgage life insurance quotes before buying to check you are getting the best deal.

Monthly Cost Of Mortgage Life Insurance – Level Term 25 Years
Mortgage Life InsuranceAge 30 (n/s)Age 30 (s)Age 35 (n/s)Age 35 (s)Age 40 (n/s)Age 40 (s)Age 45 (n/s)Age 45 (s)Age 50 (n/s)Age 50 (s)
£50,000£3.91£5.29£4.52£6.96£6.02£10.41£7.92£15.70£11.31£25.56
£100,000£5.18£7.90£6.80£10.95£8.89£18.07£13.20£28.93£19.45£48.62
£150,000£6.57£10.46£8.32£15.39£12.17£25.59£18.46£41.18£29.49£69.75
£200,000£7.66£12.72£9.95£18.69£15.43£32.49£23.27£53.07£37.13£89.69
£250,000£9.07£15.40£11.94£22.86£18.79£38.91£28.86£64.67£42.61£107.65
Last Updated: 18 October 2019 (Source: PayingTooMuch.com)

Policy Types

Level Term Life Insurance

Level term life insurance provides a fixed pay-out on death if death occurs within a fixed number of years that you select at outset. For example if you are 35 and you buy a 20 year £50,000 policy, then should you die between the ages of 35 and 55 the life cover will payout £50,000. If you die aged 56 then nothing would be paid as the policy would have expired.

As you become more likely to die with age, the longer the term of the policy, the older you are when the policy finishes, the more likely the insurer might be to pay-out and hence the higher the premium.

Term life insurance has a very real chance that it will not pay-out, which means (good news) you’re unlikely to die during the term.

Mortgage Protection Life Insurance

Mortgage protection life insurance works in the same way as level term life insurance except that the amount payable should a death occur falls over the policy term. The idea is that the amount payable is designed to match the amount outstanding on a repayment mortgage where the balance you owe the mortgage company will be falling each year as you payoff the mortgage. Mortgage protection is usually slightly cheaper than a level term life insurance as it provides less cover going down to nearly zero at the end of the term. There also could be a small shortfall if the amount payable on death should the mortgage have fallen into arrears at the time of death. This link explains the options in slightly more detail.

In summary there is no substitute for obtaining a personal insurance quote which will be based on your own date of birth and using today’s most up to date rates from a wide panel of the UK’s top insurers.