Mortgage Protection Insurance
Our mortgage protection insurance calculator estimates the monthly premium for a decreasing term life insurance policy designed to repay your mortgage if you die during the term. As your mortgage balance reduces, so does the policy payout — keeping premiums lower than level cover.
Mortgage Protection Insurance
Calculate the right level of mortgage protection cover and estimate your monthly premium.
Premiums are indicative estimates. Compare regulated life insurance providers for accurate quotes.
Mortgage Protection vs Life Insurance
Mortgage protection (decreasing term) insurance is specifically calibrated to your mortgage. This targeted structure means premiums are approximately 30–40% lower than a level term policy for the same initial sum assured. The trade-off is that a decreasing term policy leaves nothing beyond the mortgage. Use our Life Insurance Calculator to compare both options at the same initial cover level, and our Critical Illness Calculator to model the illness-triggered option.
Frequently Asked Questions
Mortgage lenders cannot require you to purchase insurance from them, but they can require you to hold adequate life cover. You are free to purchase from any regulated insurer — independent policies are almost always cheaper than those sold by mortgage providers.
The decreasing term payout is calculated using an assumed interest rate. If you overpay significantly, your actual balance may be lower than the policy assumes — meaning the payout exceeds the remaining debt. Any surplus goes to your estate.
Yes — and it is strongly advisable. Writing the policy in trust keeps the payout outside your estate, avoiding potential inheritance tax and probate delays.
If you remortgage to a different amount or term, your existing decreasing term policy may no longer align. Review your protection at every remortgage.
A joint policy is cheaper than two individual policies but pays only once — on the first death. Two individual policies cost more but each pays independently, leaving the survivor still protected.
Enter your mortgage balance and the term remaining. Mortgage protection insurance — also called decreasing term life insurance — pays out the outstanding mortgage balance on death within the term. Because the balance reduces over time, the sum assured decreases in line with the mortgage, keeping premiums lower than a level-term policy for the same initial benefit. Select your age and term, and the calculator estimates the monthly premium. If you have a repayment mortgage, decreasing term cover is typically the most cost-effective protection. For interest-only mortgages, level term cover may be more appropriate as the balance does not reduce. Some mortgage protection policies also include critical illness — evaluate whether combining both within a single policy or buying separately offers better overall value.
Important Information
This calculator is provided for general information and planning purposes only. It does not constitute financial or tax advice and should not be relied upon as such. Figures are indicative estimates based on simplified, publicly available criteria and stated assumptions. Actual results depend on your full circumstances. See our Disclaimer for further information.