If you have a mortgage, you might want to take out life insurance. Then, if you die before your policy ends, the lump sum can be used to help pay off the outstanding mortgage balance, so your family could stay in their home. Some lenders will ask you to take out life insurance as part of their mortgage offer.
If you have an interest-only mortgage, your outstanding mortgage loan stays the same until you repay it at the end of the mortgage term. Level Life Insurance could cover this type of mortgage.
But if you have a repayment mortgage, Decreasing Life Insurance may be more appropriate. The amount of cover reduces broadly in line with the decrease in your outstanding mortgage loan.
It's worth knowing, your policy isn't directly linked to your mortgage and we won't automatically end your cover if you pay off your mortgage early. Your policy will run until the selected end date, unless you tell us you wish to cancel.
Yes, although we can’t directly link your policy to your mortgage.
Our life insurance with decreasing cover provides a level of cover that decreases over time, broadly in line with a long-term loan or repayment mortgage. Your premiums stay the same. This cover type is designed to help your loved ones pay off a repayment mortgage if you pass away during the policy term.
Our life insurance with level cover provides an amount of cover that stays the same over time. You choose a lump sum to leave behind for your loved ones, and how long you want your cover to run for. You’ll then pay the same amount each month until your policy ends.
You can choose to make your cover amount increase in line with inflation, so the lump sum won't be worth less in the future. In this case, your monthly payments may rise. The maximum amount your cover can increase by each year is 10%, and your premiums to a maximum of 15%¹. If you choose not to accept the increase, or if the CPI doesn't increase, your cover and premiums will stay the same.
Level cover might be a good option if you want to help your family continue to keep up mortgage repayments, or to pay off an interest-only mortgage, after you’ve gone.
If you're unsure about which cover is right for you, talk to a financial adviser.
We can’t directly link your Life Insurance Plan to your mortgage. However, your mortgage lender may register an interest in a portion of the proceeds to cover the remaining cost of the mortgage if you were to die before it's repaid. But this only acknowledges a third-party interest, and your cover amount still won’t be directly linked to whatever’s left to pay on your mortgage.
So while your life insurance policy with decreasing cover might decrease broadly in line with your repayment mortgage, there’s no direct link between the value of the policy and the amount that's outstanding on your loan.
You can check if your mortgage lender has an interest in your policy by contacting us.
Remember, it's important to regularly review your cover to check it's meeting your needs, if you're unsure you can always speak to a financial adviser.
No, you don’t have to take out decreasing life insurance to cover a mortgage. The reason for the policy depends on a few factors, such as what you want the lump sum to cover, and how much you want to pay each month. We offer different levels of cover to suit different needs, so you can choose which one is right for you and your family. Your policy won't be directly linked to your mortgage and won't automatically end if you pay off your mortgage early. Your policy will run until the selected end date, unless you tell us you wish to cancel.
Our life insurance page explains the difference between our different types of cover, and what you might want to consider. If you’re still unsure, talk to a financial adviser about your reasons for taking out insurance. You can find an advisor at www.unbiased.co.uk.
It's a life insurance optional extra on some of our older policies that help to pay your mortgage repayments if you're unable to work for a certain length of time, if your incapacity is covered by your policy.
To check what you’re covered for, see your policy schedule in your policy booklet, or call us on 0800 015 1142. Mortgage payment protection isn’t available if you have premium protection.
If your policy was previously with Friends Life, contact us to check if the above applies to you.
For our joint protection, telephone calls may be recorded and/or monitored.
If you have a Life Insurance Plan with decreasing cover, the cover amount decreases over time, broadly in line with the repayment mortgage or long-term loan that you’re repaying. Your premiums stay the same during the term of the policy, unless you make changes to the cover. Decreasing cover usually costs less than level cover.
The policy will pay out if you die, or are diagnosed with a terminal illness, that meets our definition and aren't expected to live longer than 12 months, during the policy term. The policy only pays out once and has no cash in value at any time.
If you have a life insurance policy with increasing cover, the level of cover, and your monthly payments, may increase over time to help protect your cover amount from the effects of inflation.
With our Life Insurance Plan with increasing cover, the level of cover increases annually in line with the Consumer Price Index (CPI), a recognised measure of inflation, and your premiums will also increase annually to reflect this. The maximum amount your cover can increase by is 10%, and your premiums could increase by a maximum of 15%¹. If you choose not to accept the increase, or if the CPI doesn't increase, your cover and premiums will stay the same.
The policy pays out a lump sum if, during the policy terms, you die or are diagnosed with a terminal illness, that meets our definition, and aren't expected to live longer than 12 months. The policy will only pay out once, so if you make a successful terminal illness claim, a second claim can't be made. There's no cash value at any time.
It's totally up to you - people usually get life insurance with us when they reach a certain age, or a certain life event.
You can find out what you're covered for in the policy conditions that you received when you first took out the policy. If your policy is available in MyAviva, you can log in or register and check your cover details there.
If you're not sure please contact us
Yes. You need to be aged between 18 and 77 to take out a Life Insurance Plan with us. You can take out a policy to cover you for any duration from one to 50 years, but your age when the policy expires must be younger than 91.
This depends on your age, the cover amount and the information you gave us about your health on your application.
Most people who apply for our cover don’t need a medical. However, if you're applying for a large amount of cover, we might ask you to have a medical with either a nurse or a doctor.
We look at everyone’s application individually. If you're asked to have a medical, it’s so we can learn more while we assess your application. It doesn’t automatically mean your application won’t be accepted.
Yes, our Life Insurance Plan includes terminal illness benefit. This means we’ll pay out if you’re diagnosed with a terminal illness that meets our policy definition within the policy term and aren't expected to live longer than 12 months. If your doctor thinks you might live longer, or there's treatment that could extend your life, we won't pay out. Once we pay a terminal illness benefit, the life insurance policy ends, and we won’t pay out when you die. There’s no cash value at any time.
It’s a benefit that pays out an agreed sum of money if you have an illness or injury that means you’re permanently incapacitated.
We define total permanent disability by how it impacts your work and daily life. Whether you qualify for a payout depends on the disability, and if it’s included in your policy. Check your policy details or call 0800 015 1142.
For our joint protection, telephone calls may be recorded and/or monitored.
Yes, you can. If your combined cover is for a high amount, we might need to do a more in-depth financial assessment to make sure we're insuring you for the right amount.
The main difference is that life insurance is a term policy, so it covers you for a specific amount of time, while over 50 life insurance is a whole of life policy, so it covers you for the rest of your life.
To take out our Over 50 Life Insurance you need to be aged between 50 and 80. Your premiums are fixed for life, and you won’t need a medical or health check. You can choose a cover amount to help pay for a funeral, or it can be used for other costs, or to leave a gift to your partner or family. Once you’ve had your policy for 30 years, or from the soonest policy anniversary after your 90th birthday, you’ll no longer pay anything, but your cover will continue. It can’t be taken out as a joint policy.
With our Life Insurance Plan, you need to be aged between 18 and 77 to apply, and your cover stops at the end of the policy term. You choose a cover amount, and if you want your cover to remain the same, be protected from the effects of inflation, or decrease over time broadly in line with a repayment mortgage or loan. You can take out a single or joint life insurance policy.
If you’re not sure which one might be right for you, speak to a financial adviser.
Aviva Digicare+ is an app included with our life insurance and over 50 life insurance policies.
Please be aware these services aren’t part of your cover and could change or be removed at any time. Find out more about all these Aviva DigiCare+ services.