This guide provides general information and is not a substitute for personalised mortgage, tax or legal advice.
Written and reviewed by the Highhouse Money mortgage team · Last reviewed: 25 August 2026
We advise on a wide range of mortgage and protection products, and protection conversations usually start at the same time as the mortgage. The question is simple: if you could not work, became seriously ill or died, how would the mortgage be paid?
This guide describes the main types of cover in general terms. It is general information, not financial advice, and the right mix depends entirely on your circumstances.
Before looking at policies, list
- Who depends on your income
- Your mortgage balance and remaining term
- Savings you could fall back on
- Sick pay and death-in-service from work
- Existing policies you already hold
- Your monthly budget for premiums
Life insurance
Life cover pays a sum if the insured person dies during the policy term. For homeowners it is commonly arranged to clear the mortgage so that a partner or family is not left with the debt. Policies can be single or joint, and joint policies usually pay out once, on the first death.
Decreasing cover tracks a reducing mortgage balance, while level cover keeps the same sum throughout. Some people combine the two to cover both the mortgage and wider family needs.
Critical illness cover
Critical illness cover pays out on diagnosis of a specified serious condition that meets the policy's definition. It can be taken alone or alongside life cover. Because the list of conditions and the wording differ between insurers, comparing definitions is as important as comparing premiums.
Income protection
Income protection replaces part of your income if illness or injury stops you working, typically after a waiting period you choose. Longer waiting periods usually mean lower premiums, so aligning the start of the benefit with the end of any employer sick pay can make the cover more efficient.
Self-employed people, who have no employer sick pay, often find this the form of protection most directly tied to keeping up mortgage payments.
Comparing the main types
| Cover | Pays out when | Usually paid as |
|---|---|---|
| Life insurance | The insured person dies within the term | A lump sum |
| Critical illness | A listed condition meeting the definition is diagnosed | A lump sum |
| Income protection | Illness or injury prevents work, after the waiting period | A monthly benefit |
| Buildings insurance | The property is damaged by an insured event | Repair or rebuild costs |
General descriptions only; each policy has its own terms, definitions and exclusions.
Questions worth asking
- Does the sum assured match what would actually need paying?
- Is the term aligned with the mortgage term?
- Are premiums guaranteed or reviewable?
- What are the key exclusions and definitions?
- Should the policy be written in trust?
- How would a claim be made, and by whom?
This page is general information, not financial advice. Protection needs are personal, and cover should be recommended only after a full review of your circumstances.
Reviewing cover over time
Protection is not a one-off decision. Moving home, remortgaging, having children, changing jobs or becoming self-employed can all change what you need. Reviewing cover whenever the mortgage changes helps avoid paying for protection that no longer fits, or leaving gaps that have opened up without anyone noticing.
Frequently asked questions
Is mortgage protection insurance compulsory?
Lenders generally require buildings insurance on the property from completion, but life cover, critical illness cover and income protection are usually optional. Whether they make sense depends on who relies on your income and what savings or workplace benefits you already have.
What is the difference between decreasing and level life cover?
Decreasing cover pays out a sum that reduces over time, roughly in line with a repayment mortgage balance, so it is often cheaper. Level cover pays the same amount whenever a valid claim is made, which can also leave money for the family beyond clearing the mortgage.
Does critical illness cover pay out for any illness?
No. Policies list the conditions they cover and the definitions that must be met. Reading those definitions, and understanding any exclusions, is essential before relying on the cover.
Do I need income protection if I get sick pay from work?
Employer sick pay often reduces or stops after a set period. Income protection can be designed to start when that support ends, so it is worth checking exactly what your employer provides before deciding.
Does my health affect protection cover?
Yes. Insurers ask about health, lifestyle and sometimes family history. Answering fully and accurately matters, because incorrect answers can lead to a claim being reduced or refused.
Sources and further reading
Where figures or rules can change, the position described is correct at the time of writing (25 August 2026) — always check the linked authoritative source for the latest position.
Related pages
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