Life Insurance Advice
Life insurance can provide funds towards your mortgage and your family's needs if you die during the policy term. The Insurance Genie, the protection service of The Mortgage Genie, helps you compare suitable cover from a panel of protection insurers.
What life insurance does
Most life insurance pays a lump sum if you die during the policy term, subject to the policy terms. Your family could use it towards the mortgage, other debts or day-to-day costs. Whether you're a first-time buyer or moving home, it's worth thinking about how your household would manage without your income.
Life insurance is mainly designed to pay out when you die. Some policies also include terminal illness benefit, which can pay the claim early if you are diagnosed with an illness expected to lead to death within a set period, often 12 months, as defined in the policy. Not every policy includes it, and the conditions vary. Terminal illness benefit is not the same as critical illness cover. For cover while you're alive and recovering from a serious illness or unable to work, you may also want to look at critical illness cover or income protection. Life insurance doesn't protect the building itself; for that, see buildings and contents insurance.
Premiums on most term policies are fixed when you take the policy out, unless you choose reviewable premiums
Cover can be arranged on one life or jointly, and can be combined with critical illness cover
Policies can often be written in trust, so the payout goes to the people you choose
Types of life insurance
Level term life insurance
Pays a fixed lump sum if you die within the policy term. Often chosen for an interest-only mortgage or to leave a set amount for your family.
Decreasing term life insurance
The lump sum reduces over the term, often in line with a repayment mortgage. If the mortgage falls more slowly than the cover, for example because rates rise, the payout may not repay the full balance.
Whole of life insurance
Covers you for the rest of your life rather than a set term, so a claim will be paid whenever you die, provided premiums are kept up. Sometimes used for funeral costs or inheritance tax planning.
Family income benefit
Pays a regular income rather than a lump sum, from a valid claim until the policy ends. It can suit ongoing household costs but is not designed to repay a mortgage in one go.
Family income benefit
Family income benefit is a type of term life insurance that pays your family a regular income rather than a lump sum. Payments start from a valid claim and continue until the end of the policy term, so the total paid depends on how much of the term is left.
A regular income can be easier to budget around for household bills and childcare. It isn't designed to repay a mortgage in one go, so some people combine it with lump-sum cover. Your adviser can explain whether it suits your plans.
Read our family income benefit guideWhich cover does what?
| Cover | What it pays | Often used for |
|---|---|---|
| Lump-sum life insurance | A lump sum if you die during the term | Funds towards a mortgage, debts or your family's needs |
| Family income benefit | A regular income if you die during the term, until the term ends | Ongoing household bills and living costs |
| Critical illness cover | A lump sum if you're diagnosed with a condition your policy covers, as defined by the insurer | Funds while you're alive, for example towards the mortgage, treatment or time off work |
| Income protection | A regular payment replacing part of your eligible income after a deferred period | Keeping up bills if illness or injury stops you working |
What each policy pays, and when, depends on its terms and definitions.
Life insurance FAQs
Sources for the statistics on this page
- Life insurance claims paid and claim statistics across UK insurers — Association of British Insurers (ABI) protection claims data (figure checked September 2026)
Figures are for general information only and may change. They are not a personal recommendation or a quotation. Premiums, cover levels and eligibility depend on your own circumstances and the insurer's terms.
Talk to us about life cover
Tell us what you'd like help with. You can ask for an initial conversation without completing a detailed cover assessment. We don't charge a fee for protection advice.
Step 1 of 4
What protection do you need?
Select the cover that best matches your needs.