benefits of mortgage protection insurance, mortgage protection insurance, life insurance for parents

Do Parents Need Life Insurance with a Mortgage?

Being a parent is a full-time responsibility and all the mums and dads out there will vouch for that. You’re concerned about the quality of life your children should experience – you want the best for them, their future which is only natural.

…the best schools within your financial means, to enjoy the right food, nice clothing, holidays and breaks away, along with other miscellaneous expenses.

Do you ever slip into thoughts such as ‘what would happen to my family if I was to suddenly die’? Well, there is a way you can help them. Life insurance for parents is a very good way to plan and to secure the future for your children.

Mortgage life insurance will help you to protect your home, the house your family live in.

Life Insurance for Parents – How?

From the time your child is born, you do your best to give them the best start in life within your means, until they are no longer dependent on you. It can be very expensive and involves a lot of financial commitment.

If you were to suddenly pass, your surviving partner might need to employ and pay for services such as child-care and domestic help to make up for your absence. It won’t be easy.

do parents need life insurance with a mortgage

Thankfully, aside from mortgage protection, a life insurance policy can help; it can make up for the earnings you would have contributed to important things such as family mortgage costs and childcare expenses for example. So mums and dads are encouraged to take out life insurance.

You Can Get Life Insurance Today

You can apply for life insurance easily through a reputable family life insurance broker, and you keep it active by paying an affordable monthly premium.  Life insurance doesn’t have to be expensive, there are different types to consider.

Setting up a Trust is always recommended by Prime, however you can also set up a custodian to manage it all until your children reach a more mature age.

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Will you Need Mortgage Protection Insurance?

Life insurance is more flexible than mortgage insurance. If you want to set up a way to pay off a mortgage or a home loan if you the homeowner should die, then mortgage protection will be the option but both types of insurance can be taken out together because they both bring different types of benefits.

With no insurances in place, your family could be burdened with the task of paying off the mortgage. If there is no money to pay the mortgage your family would lose their right to live in their family home. 

There are ways though, to prevent this from happening, so consulting with a reputable mortgage and life insurance broker will help you tremendously in making the right decisions with free advice and free quotes.

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Signing on the Dotted Line for Mortgage Protection Insurance

The moment you agree to the terms and conditions of a policy, you will start paying a premium each month to maintain your insurance – to keep it active. If you own your own home, it’s worth noting that the premium you pay will depend on various factors such as your mortgage balance & term, age, location, and gender. The mortgage protection insurance provider will give the death benefit value straight to the mortgage lender to pay off the mortgage if the policy holder dies.

Benefits of Mortgage Protection Insurance

Quick Acceptance: Irrespective of the state of your health or the complexity of your occupation, you wouldn’t need any form of pre-medical exams or laboratory tests to get approval.

Limited Timeline: In the case of disability protection, if you ever lose your job or suffer from any form of disability, some providers will make mortgage payments, although for a limited time.

Mortgage Protection Insurance – The Downside

Age Restrictions: Providers can have very stringent rules concerning how to apply. Age limit is one, and in some cases, when a person is over the age of 45 a provider might refuse to offer a 30-year policy.

Less Flexibility: Beneficiaries are not allowed to use any of the insurance benefits for anything else but the mortgage.

Costs: One type of life insurance is Term life insurance, and this usually costs less than Mortgage Protection Insurance. Always read the fine print: some insurance policies can say that the premiums might increase over the term of the policy.

benefits of mortgage protection insurance

If you own your home, you won’t have a need to protect a mortgage. But as a parent, if you have enough life insurance coverage, you might not require mortgage protection. However, in certain circumstances mortgage protection can be a very suitable backup plan.

Generally, mortgage protection or decreasing term assurance is set up to repay the mortgage based on an interest rate of 8%. Rates are low now but if they went over 8% for a long period of time there is a risk that there will be a shortfall in cover. Some insurers offer the option of guaranteed mortgage protection which is basically decreasing term insurance but guaranteed to repay the mortgage in full regardless of interest rate changes. Both mortgage protection and decreasing term assurance require underwriting and do not offer disability benefit.

Make a family mortgage broker aware of your intentions, so they can find you provide you with the best advice and the best quotes.


Prime Financial Solutions and Mortgages Ltd

If you are a parent and you need help with finding Life Insurance or mortgages, contact us Prime can help – telephone 01942 665 436:


There are many obstacles to overcome when it comes to finding the right mortgage and life insurance solutions. Just finding the time can be a squeeze on your daily schedule, especially after you arrive home after a long day with limited energy. When you choose Prime, you’re choosing a UK broker that works hard on your behalf to get you great options in what for you, can be a very complex, frustrating and time consuming processes.

At Prime we have an exceptional FCA approved team of life insurance & mortgage specialists who work for you from our first hello. Life insurance quotes and mortgage quotes are free. We provide excellent one to one services all tailor made to your own individual needs and circumstances, and we make your time with us hassle free – we do all of the heavy lifting so you don’t have to.

Prime is proud of the reputation it has built over many years, and this is largely reflected through the positive reviews we receive on a regular basis from customers in Wigan, Greater Manchester and across UK, in person, on Trust Pilot and Google online.

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Perhaps there is something you don’t understand and you need more clarity? Maybe you have more questions? Our dedicated team of experts will answer any and all of your questions – just let us know.

Getting life insurance or a mortgage agreed is a major step forward in life – a major leap forward. We can also help with further services so you can ensure your family is taken care of if there is sudden terminal illness. You can find out more about us and what we do here and if you need help with anything else, Prime will help you. Click here to Get a Life Insurance Quote or use our quick contact form to get in touch. Our friendly dedicated team is available by telephone 01942 665 436 during office hours.


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