What is Mortgage Life Insurance?

Mortgage Life Insurance (also known as decreasing life insurance) is a type of cover that can help you ensure your family can still pay off the mortgage if you unexpectedly pass away. If you die during the policy term, your family will receive a cash lump sum once they have made a claim. Mortgage Life Insurance can be a great way to ensure that your loved ones can continue to live in your family home should you pass away.

Do you have to have Life Insurance with a mortgage?

This depends on your mortgage provider. Some providers insist that you have Mortgage Life Insurance in place, while others don’t. Regardless of whether or not it’s a requirement, Mortgage Life Insurance could make all the difference to your loved ones should you pass away unexpectedly. If you believe that your family would struggle to keep up with mortgage repayments following your death, it could be worthwhile putting some financial protection in place.

How much cover do I need for a Mortgage Life Insurance policy?

It can be hard to work out exactly how much Mortgage Life Insurance cover you really need. You want to strike the right balance to make sure you don’t over or under insure yourself. To do this, you should choose a benefit amount that is high enough to help cover your mortgage and any other future needs of your family, while also making sure you can afford to pay the regular monthly premiums.

How much does Mortgage Life Insurance cost?

The cost of Mortgage Life Insurance varies from person to person and depends on a few factors including your age, your current health status, your occupation, and your smoker status. Your chosen benefit amount and term length will also affect the cost of your monthly premiums. For example, you could get £100,000 worth of cover for as little as £4.84 per month. This is for a 32-year-old non-smoker over a 20-year term.

How long do I need to make payments for?

When you’re taking out your policy, you will choose a policy term. This refers to how long you want your cover to last. A policy term can be between 5 and 40 years however it must end by the policy anniversary on or following the attainment of age 89. You will then pay the agreed monthly premium until your policy term is completed. If you miss two consecutive monthly payments, your cover will end.

Mortgage Life Insurance For Homeowners

We regret to inform you that we are no longer accepting new customers.

If you’re looking for cover, Smart Insurance offers Family Life Insurance that could help your family to manage major household debts like the mortgage and car repayments, or simply help with daily living expenses if the worst were to happen. Please call them on 0800 977 6057 for your free quote, or visit their website www.smartinsurance.co.uk

Please note: If you’re an existing customer, your FRANKLi policy remains unaffected. Please call FRANKLi customer service on 0800 542 7981 if you have any questions.

Getting protection is easy

Mortgage Life Insurance is a simple way to make sure that your family can keep up with bills and other expenses if you were to pass away suddenly. Simply choose your benefit amount, how long you want your cover to last and a monthly premium that works for you, and you’ll be protected from day one (except if death is the result of self-inflicted injury in the first 12 months). Our Mortgage Life Insurance includes our guarantee that if your benefit amount is less than your outstanding mortgage at claim time and you meet the criteria, we'll pay the difference. As well as that, our funeral pledge means that you could get up to £10,000 of a valid claim paid in advance for your funeral. So, you can have some peace of mind that your family are in safe hands.

How does Mortgage Life Insurance work?

Choose a benefit amount that is enough to help cover the mortgage and your family’s future needs, with a monthly premium that you can afford. If you die during your policy, your family will receive a lump sum that could help them to keep up with mortgage repayments and keep living in the family home. If you’re unfamiliar with Mortgage Life Insurance, our guide will help you fill in any gaps.

FRANKLi Mortgage Life Insurance is a decreasing policy. That means that over time, as the amount you pay on your mortgage goes down, so does your cover. You may have seen it described as ‘decreasing term insurance’ for this reason. Your benefit amount will decrease by a fixed mortgage interest rate of 8% each year. With a decreasing policy, your monthly premium will remain fixed for the duration of your cover.

See how our policy compares

Why choose FRANKLi?

Protecting your home is one of the most important things you can do for your family. After all, if the worst happened, wouldn’t you want life to carry on as normal? That’s where we can help. Our Mortgage Life Insurance is one of the highest quality policies on the market. Not only that, if your benefit amount is less than your outstanding mortgage at claim time and you meet the criteria, we'll pay the difference.

Affordable – Get Mortgage Life Insurance from less than £5 per month¹
Quick and easy - Get a quote or get covered today, with no medical or blood tests
Mortgage guarantee - If your benefit amount is less than your outstanding mortgage at claim time and you meet the criteria, we'll pay the difference
FREE healthcare services - You, your partner and kids (up to age 21) will get unlimited access to a range of health and wellbeing services
Choose your benefit amount from £20,000 up to £750,000 depending on your age
Funeral Pledge - Up to £10,000 of a valid claim paid in advance for your funeral
£100 Gift Card – Get a £100 Amazon.co.uk Gift Card with your policy*
Claim support fund – Get up to £300 of additional support during a claim, that could pay for costs such as bereavement counselling or taxis to the hospital
Free Will Kit worth £100
Immediate cover (except if death is the result of self-inflicted injury in the first 12 months)
Full benefit amount paid in advance if you are diagnosed with a terminal illness by a medical specialist

Help your family stay in the family home

Have you thought about how your loved ones would pay your mortgage if you were no longer around? Unfortunately, even after a tragedy, things like a mortgage still need to be paid. Without your income it could leave your family vulnerable. With the right protection in place, it could help ease some of these financial concerns.

When you take out mortgage life insurance with FRANKLi, you’ll be protected from day one (except if death is the result of self-inflicted injury in the first 12 months), so you can feel confident that you’re in safe hands. What’s more, when the time comes to claim, if you meet the criteria and if your benefit amount is less than the outstanding mortgage, we'll pay the difference.

Free Info Pack

Find out more about FRANKLi Life Insurance and Mortgage Life Insurance with our free, easy-to-understand information pack, including important things to consider when buying life insurance.

What's covered by FRANKLi Mortgage Life Insurance?

When it comes to something as important as your family, you shouldn’t have to wait. That’s why you’re covered from day one with FRANKLi (except if death is the result of self-inflicted injury in the first 12 months). If you pass away during your policy term, your family will receive a lump sum that could help them to keep up with mortgage repayments and other outgoings. This includes if you were to contract coronavirus and subsequently pass away, or if you are diagnosed with a terminal illness with 12 months or less to live by a medical specialist.

You can choose a benefit from £20,000 up to £750,000, depending on your age and choose a policy that lasts between 5 and 40 years*. As well as that, FRANKLi Mortgage Life Insurance gives you access to FREE healthcare services, funeral pledge and claim support fund at no extra cost to you.

*Your policy must end before the policy anniversary following your 89th birthday.

FREE healthcare services

All the help you need to manage your loved ones' health and wellbeing, whatever life throws at you.

24/7 remote GP – Unlimited access to a UK-registered GP anywhere in the world.
Online health check – Personalised recommendations to help you take control of your health.
Mental health support – One-off chats to remote therapy from trained professionals.
Fitness programme – A diet and exercise plan to help you achieve your goals.
Nutrition consultation – Nutritionists on hand to help with diets, weight loss, allergies and more.
Expert case management – A second opinion from a medical expert.

Learn more

Frequently Asked Questions

What is Mortgage Life Insurance?

Mortgage Life Insurance (also known as decreasing life insurance) is a type of cover that can help you ensure your family can still pay off the mortgage if you unexpectedly pass away. If you die during the policy term, your family will receive a cash lump sum once they have made a claim. Mortgage Life Insurance can be a great way to ensure that your loved ones can continue to live in your family home should you pass away.
How does Mortgage Life Insurance work?

At the start of your policy you’ll choose a cover amount that would be enough to help with mortgage repayments should you die. You’ll also choose how long you want your policy to last and agree how much your monthly payments will be.

Over time, as your outstanding mortgage amount decreases, your benefit amount decreases over the policy term based on a fixed mortgage interest rate of 8%.

When it's time to claim, if your benefit amount is less than the outstanding mortgage, we'll pay the difference. That's called the Mortgage Guarantee and one of the benefits of choosing FRANKLi. There are certain terms that need to met in order to qualify for the Mortgage Guarantee. You can find all of the details of these conditions within the keys facts document.
Do you have to have Life Insurance with a mortgage?

This depends on your mortgage provider. Some providers insist that you have Mortgage Life Insurance in place, while others don’t. Regardless of whether or not it’s a requirement, Mortgage Life Insurance could make all the difference to your loved ones should you pass away unexpectedly. If you believe that your family would struggle to keep up with mortgage repayments following your death, it could be worthwhile putting some financial protection in place.
How much cover do I need for a Mortgage Life Insurance policy?

It can be hard to work out exactly how much Mortgage Life Insurance cover you really need. You want to strike the right balance to make sure you don’t over or under insure yourself. To do this, you should choose a benefit amount that is high enough to help cover your mortgage and any other future needs of your family, while also making sure you can afford to pay the regular monthly premiums.
How much does Mortgage Life Insurance cost?

The cost of Mortgage Life Insurance varies from person to person and depends on a few factors including your age, your current health status, your occupation, and your smoker status. Your chosen benefit amount and term length will also affect the cost of your monthly premiums. For example, you could get £100,000 worth of cover for as little as £4.84 per month. This is for a 32-year-old non-smoker over a 20-year term.
How long do I need to make payments for?

When you’re taking out your policy, you will choose a policy term. This refers to how long you want your cover to last. A policy term can be between 5 and 40 years however it must end by the policy anniversary on or following the attainment of age 89. You will then pay the agreed monthly premium until your policy term is completed. If you miss two consecutive monthly payments, your cover will end.

View all Frequently Asked Questions

Got a question?

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How to make a claim

At a difficult time, it's straightforward for your family to make a claim with FRANKLi:

Contact us to start the claim process.
Once a claim request is received, AIG Life Limited will contact the claimant and will send a claim form to be completed, signed and returned.
Provide any requested medical information.

Things to Consider

Consider the benefit amount you choose as inflation may reduce its buying power over time.
If you stop your monthly payments, you will get nothing back.

View full policy terms & conditions

FRANKLi Blog

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Life insurance

Because if you were to die, you'd want your family to be able to afford the bills and other outgoings, and carry on with life as normal.

Find Out More

You will receive your gift card once a minimum of 6 successful monthly premiums have been paid and the total premiums paid exceed the face value of the gift card. View full terms and conditions

£4.87 per month for a 32-year-old non-smoker with £100,000 of mortgage life insurance cover over a 20-year term.