Protection advice

Life insurance advice to protect the people who matter most

Q: Is life insurance compulsory for a mortgage?

Life insurance is not normally a legal requirement for a mortgage, although a lender may require buildings insurance. It can still help a family repay or maintain the mortgage after a death.

Q: Should couples have joint or separate life insurance policies?

A joint-life policy commonly pays once and then ends, while separate policies can potentially provide two separate benefits. Suitability depends on budget, cover needs and personal circumstances.

Q: Can I get life insurance with a medical condition?

It may be possible, but an insurer can request more information, charge a higher premium, add an exclusion or decline cover depending on the condition and its severity.

Q: Can life insurance be written in trust?

Many life policies can be placed in trust to help direct the benefit to chosen beneficiaries. The legal and tax implications should be considered carefully.

Life insurance can provide financial support for your family if you die during the policy term. We help you understand the different types of cover, decide how much protection may be appropriate and arrange a policy around your mortgage, family and budget.

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Personal recommendationsCover considered around your circumstances.

Mortgage and family needsProtection can be structured for more than one purpose.

Clear explanationsUnderstand the term, benefit and important conditions.

Application supportHelp throughout underwriting and policy setup.

Understanding the cover

What is life insurance?

Life insurance is designed to pay a benefit if the insured person dies while the policy is in force and the claim meets the policy terms.

The money could help your family repay a mortgage, manage household bills, replace lost income, cover childcare or education costs, settle other debts or meet funeral expenses. The appropriate amount and type of cover will depend on what you want the policy to achieve.

Some policies pay a lump sum. Family Income Benefit is different because it is normally designed to pay a regular income for the remaining policy term following a valid claim.

Policy options

Common types of life insurance

The right structure depends on whether you are protecting a reducing debt, a fixed family need or an ongoing household income.

Level term insurance

The amount of cover normally stays the same throughout the agreed term. It can suit fixed debts, interest-only mortgages or a set family protection need.

Decreasing term insurance

The benefit reduces over time and is often considered alongside a capital repayment mortgage where the outstanding balance is also expected to reduce.

Family Income Benefit

Rather than one lump sum, a valid claim normally produces regular payments for the remainder of the policy term, helping replace lost household income.

Whole-of-life cover

Designed to remain in force for life provided premiums and policy conditions are met. It can be used for longer-term estate or funeral planning needs.

How much life insurance might you need?

Your outstanding mortgage and other borrowing
How much household income would be lost
How long your dependants may need support
Childcare, education and day-to-day living costs
Existing savings, investments and employer benefits
Whether the benefit should increase with inflation

Mortgage protection

Should life insurance match your mortgage?

Mortgage protection is one common reason for arranging life cover, but simply matching the mortgage balance may not provide enough support for your wider family.

A decreasing policy can be considered for a repayment mortgage, while level cover may be more appropriate for an interest-only mortgage or a fixed family need. Some households use separate policies for the mortgage and family protection so each objective has a clear amount and term.

Important: Life insurance is not usually a legal requirement for a mortgage, but you should consider how the mortgage and household costs would be managed if an income provider died.

Our advice process

How CoG Financial can help

Understand your priorities

We discuss your mortgage, dependants, income, existing cover and what you want the policy to achieve.

Calculate the need

We consider a suitable amount, term and benefit structure instead of relying on a generic online estimate.

Review suitable policies

We explain relevant options, premiums, exclusions, underwriting and how different policy features compare.

Support the application

We help manage the application process and remain available when your protection needs change.

Frequently asked questions

Life insurance FAQs

Is life insurance compulsory for a mortgage?

It is not normally a legal requirement, although a lender may require buildings insurance. Life cover is still worth considering because it could help your family repay or maintain the mortgage after a death.

Should couples have joint or separate policies?

A joint-life policy commonly pays once and then ends. Separate policies can potentially provide two separate benefits, but may cost more. The right approach depends on budget, cover needs and each person's circumstances.

Can I get life insurance with a medical condition?

Possibly. The insurer may request more information, apply a higher premium, add an exclusion or decline cover depending on the condition and its severity. Existing cover should not be cancelled until replacement cover is fully in force.

Can life insurance be written in trust?

Many life policies can be placed in trust, which can help direct the benefit to chosen beneficiaries. Trusts have legal and tax implications, so the wording and suitability should be considered carefully and legal advice may be appropriate.

When should I review my policy?

A review may be useful after moving home, changing mortgage, having children, marrying, separating, changing job or experiencing a material change in income or family responsibilities.

Explore your options

Related protection advice

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Policy benefits, definitions, exclusions and eligibility vary between insurers. Cover is subject to underwriting, policy terms and successful payment of premiums.