Do you need life insurance for a mortgage?
Learn about life insurance and mortgages. And find out about Mortgage Protection with Tesco Life Insurance.
Published: 20 August 2025
Life insurance and your mortgage
If you’ve taken out a mortgage, or you’re planning to, you might be wondering if you should get life cover. Here, we explain why you might want to get life insurance if you’ve got a mortgage.
If you’re new to life insurance, take a look at our beginner’s guide - What is life insurance?
You can also find out what some of the key terms mean in our life insurance glossary.
Types of life insurance for a mortgage
Family protection - Level Term life insurance
With Level Term life insurance, also known as Family Protection, your premium and the amount you’re covered for stay the same throughout the term of the policy. You can also protect your cover from the effects of inflation. If you decide to do that, your lump sum payment will increase in line with rising prices, although your monthly payments will also go up to pay for the higher cover.
Mortgage Protection - Decreasing Term life insurance
Decreasing Term life insurance, which we also call Mortgage Protection, is built with mortgages in mind, but you can use it for other things too. The amount you’re covered for goes down each month, just as the outstanding balance on your mortgage does. This might make it cheaper than other types of term life insurance, because the lump sum payout gets less as your mortgage goes down.
Your options with Tesco Life Insurance
With Tesco Life Insurance, you can choose either Family Protection or Mortgage Protection to get the cover that meets your needs.
Do landlords need life insurance?
Life insurance can give landlords some much-needed protection. If you die while you’re a landlord, and you have a life insurance policy in place, your family or business partners could continue covering the mortgage payments and other associated costs, like repairs or bills. So, even if you own the home outright and you’re just renting it out for extra income, a life insurance payout could help to cover costs like maintenance, bills or taxes.
How much cover do I need from a mortgage life insurance policy?
The amount of cover you need from your life insurance policy depends on a couple of things.
- Outstanding balance on your mortgage - you'll need to think about how much you owe on your mortgage and how much you’d want a potential payout to cover.Outstanding balance on your mortgage - you'll need to think about how much you owe on your mortgage and how much you’d want a potential payout to cover.
- Interest rates - if you’ve got an adjustable-rate mortgage, you should be prepared for potential increases in your payments.Interest rates - if you’ve got an adjustable-rate mortgage, you should be prepared for potential increases in your payments.
Do I need life insurance if I don't have a mortgage?
Even if you don't have a mortgage, having life insurance can give your family some financial support if you can’t be around to provide for them. A lump sum payout could be used for things like:
- Replacing your income, to help with monthly expensesReplacing your income, to help with monthly expenses
- Paying off debts, loans and anything you own, like car loans or credit card balancesPaying off debts, loans and anything you own, like car loans or credit card balances
- Funeral costsFuneral costs
- School, college or university funds for your childrenSchool, college or university funds for your children
While you don’t need a life insurance policy to get a mortgage, it can help protect your home and give your family some financial security if you die. Whether you have a mortgage, own your home outright, you’re a landlord, or even if you rent your home outright, life insurance has a lot of benefits worth thinking about.
Calculate your life cover
If you want to work out how much life cover you might need, check out our guide - How much life insurance do I need?
Why get Tesco Life Insurance?
Everyone has different financial needs, so Tesco Life Insurance comes with 2 types of cover to choose: Family Protection and Mortgage Protection.
At Tesco Insurance, we want to help you with the things that matter most. That’s why Tesco Life Insurance comes with a Big Win and lots of Little Helps.
- Clubcard Prices - Save 5% on Tesco Life Insurance with your Clubcard.Clubcard Prices - Save 5% on Tesco Life Insurance with your Clubcard.
- Your Big Win - Get a £100 Tesco gift card after you’ve paid 6 months’ premiums.Your Big Win - Get a £100 Tesco gift card after you’ve paid 6 months’ premiums. T&Cs apply.
- Your Little Helps - Get a full year of coupons in your Tesco grocery app to help you shop at Tesco.Your Little Helps - Get a full year of coupons in your Tesco grocery app to help you shop at Tesco.
As well as your Tesco benefits, you’ll also get Aviva DigiCare+ - a health and wellbeing service from Aviva that includes free annual health checks and the Bupa Anytime HealthLine.
Tesco Life Insurance is provided and administered by Aviva, who have a 5-star rating for life insurance and pay out on 98.8% of claims.
Important information
About Tesco Life Insurance
Tesco Life Insurance is arranged, administered and underwritten by Aviva Life & Pensions UK Limited.
Tesco Personal Finance Ltd acts as an introducer to Aviva Life & Pensions UK Limited which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Member of the Association of British Insurers. Firm Reference Number 185896.
Aviva Life & Pensions UK Limited. Registered in England & Wales No. 3253947. Registered Office: Aviva, Wellington Row, York, YO90 1WR. Tesco Personal Finance Ltd and Aviva Life & Pensions UK Limited. are not part of the same corporate group.
About Tesco Insurance
Tesco Insurance is a trading name of Tesco Personal Finance Ltd, Registered Office: 2 South Gyle Crescent, Edinburgh, EH12 9FQ (registered in Scotland, no SC173199) which is authorised and regulated by the Financial Conduct Authority (register no. 186022).
Aviva DigiCare+ app
With the Aviva DigiCare+ app, you can start using a range of health and wellbeing services, at no extra cost, when you take out your policy.
Members of your family can use it too, as long as they're eligible.
The Aviva DigiCare+ app is provided by Square Health. The services are provided by Square Health and other selected partners.
You'll find full details about the services in the app, along with the terms and conditions, residency restrictions and privacy policy.
Aviva DigiCare+ is a non-contractual benefit that could be changed or withdrawn by Aviva at any time. So, it won't appear in any contract you've signed, or in any terms and conditions.
Life Insurance policy booklets
Please check the policy documents to make sure the cover you’ve chosen meets your needs.
The policy booklet and product information documents tell you about the benefits, limitations and exclusions that’ll apply to your cover.
The Big Win - £100 Tesco Gift Card
Terms and conditions
- You’ll get a £100 Tesco Gift Card once you’ve paid 6 months’ premiums, if you have a current Tesco Life Insurance policy.You’ll get a £100 Tesco Gift Card once you’ve paid 6 months’ premiums, if you have a current Tesco Life Insurance policy.
- Customers are entitled to one Tesco Gift Card per policy.Customers are entitled to one Tesco Gift Card per policy.
- We'll send your Tesco Gift Card to the email address you used when applying for your Tesco Life Insurance policy.We'll send your Tesco Gift Card to the email address you used when applying for your Tesco Life Insurance policy.
- Tesco Gift Cards should be treated like cash. Lost or stolen cards can’t be replaced.Tesco Gift Cards should be treated like cash. Lost or stolen cards can’t be replaced.
- You'll get an e-gift card, which can be used in any UK Tesco store. Please note, your Tesco Gift Card can’t be used in Tesco Petrol Stations.You'll get an e-gift card, which can be used in any UK Tesco store. Please note, your Tesco Gift Card can’t be used in Tesco Petrol Stations.
- Tesco’s change of mind policy does not apply to gift cards. If you change your mind, you can’t return your Tesco Gift Card for a refund. Your legal rights are not affected.Tesco’s change of mind policy does not apply to gift cards. If you change your mind, you can’t return your Tesco Gift Card for a refund. Your legal rights are not affected.
- Your Tesco Gift Card and balance will expire five years after the date you activated your card, or the date you last used your card, whichever comes later.Your Tesco Gift Card and balance will expire five years after the date you activated your card, or the date you last used your card, whichever comes later.
- Damaged, altered or cancelled cards won’t be accepted as payment.Damaged, altered or cancelled cards won’t be accepted as payment.
- Your Tesco Gift Card can’t be used to buy another Tesco Gift Card, or to buy other gift cards sold in-store or online at tescogiftcards.com. Your Tesco Gift Card can’t be used to buy another Tesco Gift Card, or to buy other gift cards sold in-store or online at tescogiftcards.com.
- We reserve the right to amend, modify or terminate this offer from time to time, at our sole discretion, and without prior notice.We reserve the right to amend, modify or terminate this offer from time to time, at our sole discretion, and without prior notice.
Little Life Helps - Tesco shopping benefits
Terms and conditions
- You’ll get money-off coupons to spend on your Tesco shopping for one year, starting from the date you get your first coupon.You’ll get money-off coupons to spend on your Tesco shopping for one year, starting from the date you get your first coupon.
- You’ll need to have the Tesco app on your mobile phone and be opted in to marketing.You’ll need to have the Tesco app on your mobile phone and be opted in to marketing.
- The coupons will appear automatically in your Tesco app.The coupons will appear automatically in your Tesco app.
- You'll get up to 5 Tesco coupons throughout the year, which could include £15 off your total shop and £5 off fruit & veg.You'll get up to 5 Tesco coupons throughout the year, which could include £15 off your total shop and £5 off fruit & veg.
- We reserve the right to amend, modify or terminate this offer from time to time, at our sole discretion, and without prior notice.We reserve the right to amend, modify or terminate this offer from time to time, at our sole discretion, and without prior notice.
Tesco Life Insurance is provided, administered and underwritten by Aviva Life & Pensions UK Limited.
Aviva have a 5-star rating for life insurance from Defaqto. And they pay out on 98.8% of life insurance claims*.
*Aviva UK individual claims report 2025, based on claims paid in 2024.
Learn more about Life Insurance
Find the right cover to give financial support to your family after you’ve gone. Tesco Life Insurance comes with Clubcard Prices, some great Tesco shopping benefits and Aviva DigiCare+.