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.

• Will FRANKLi Mortgage Life Insurance pay off my mortgage if I die?

  At the start of your policy you'll choose a benefit amount that you believe is high enough to cover your mortgage should you unexpectedly pass away. We understand that an outstanding mortgage is a concern for you, that's why we also offer the Mortgage Guarantee. With this benefit, if you pass away during your policy and your cover amount exceeds how much is left on your mortgage, then it can cover it. You should bear in mind that in order for the mortgage guarantee to be applied there are certain terms and conditions. You can find the detail in our key facts document. Over time, as the amount you pay on your mortgage goes down, so does your mortgage cover.

• What is the difference between Life Insurance and Mortgage Life Insurance?

  Life Insurance, also known as ‘level cover’, has a set amount of cover throughout the whole term of the policy. You decide how much cover you want at the start of your policy and it doesn’t change. Your premiums stay the same throughout your policy.
  
  Decreasing life insurance, or Mortgage Life Insurance, will reduce over the term of the policy. The benefit amount decreases over the policy term based on a fixed mortgage interest rate of 8%. This type of life insurance is typically used to cover specific debts or loans, like your mortgage. Your premiums will also remain the same throughout the policy. 

• Who can get Mortgage Life Insurance?

  If you're a UK resident aged 18-84 and you pass our health and lifestyle questions, then you can apply for FRANKLi Mortgage Life Insurance. In general, your life insurance policy will be cheaper the younger you are when you take it out.

• What happens to my mortgage if I die?

  If you don't have Life Insurance or Mortgage Life Insurance in place and you have taken out a mortgage with a spouse or partner, then in the event of your death, your spouse or partner must continue to pay that mortgage.

  
  If you have taken out a mortgage on your own, your home will become part of your estate and can be used to help pay off any outstanding debts you may have. 

• Will I need to provide medical information?

  Not with FRANKLi. There are no medicals or blood tests required, we will only ask you a few health and lifestyle questions.