One of the most common questions I’m asked by my clients is, “Do I need life insurance, income protection or critical illness cover to get a mortgage?” It’s a great question, and the answer is one that often surprises people.
In my short video, I explain the difference between what’s required by the lender and what you might want to put in place to protect your home and your future.
Watch “What Should You Prioritise?” on YouTube
What Is Actually Required?
The only insurance that is a condition of your mortgage is buildings insurance. Why? Because if the worst happened and the property was destroyed (say, by fire or flood) your lender needs to know the home can be rebuilt. They want to protect the money they’ve lent you. That’s their main concern.
Buildings insurance ensures the lender won’t lose out financially if the property is damaged or completely lost. It’s about protecting their investment.
But what about you and your family?
What Happens If You Can’t Pay the Mortgage?
If you become seriously ill, lose your job, or your partner passes away, the lender doesn’t automatically offer you a safety net. If your monthly payments stop, they are still legally entitled to repossess the property to recover their funds.
That’s why it’s so important to consider what you need to feel secure. The mortgage might still be in place, but you’re the one who needs to continue paying it, regardless of what life throws at you.
So What Should You Prioritise?
This is where protection comes in.
It’s not just about ticking a box for the lender. It’s about protecting your ability to stay in your home.
The most common types of protection to consider are:
- Life Insurance – pays out a lump sum if you die, helping your family cover the mortgage or other expenses
- Critical Illness Cover – pays out if you’re diagnosed with a serious illness like cancer, heart attack or stroke
- Income Protection – provides a regular income if you can’t work due to illness or injury
These are not one-size-fits-all policies. Each person’s needs, family setup, income and budget are different, and so is the kind of protection that might be right for them.
Some people need all three types of cover. Others might just need one. What matters is understanding the risk and putting a plan in place.
Get Tailored Advice
Protection products are just as complex as mortgages. There are so many options out there, and each one has different features, terms and price points.
As a mortgage and protection broker, I help clients make sense of it all. I look at your situation holistically — not just the property you’re buying, but your family, your finances, and what would happen if your circumstances changed.
Whether you’re buying your first home, remortgaging, or just wanting to review your existing cover, it’s never too early (or too late) to have this conversation.
Watch My Video
Need help deciding what protection is right for you?
Get in touch today for personalised advice. I’ll help you understand your options and make sure you’re protected with a solution that fits your life and your budget.
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