What insurance do I need with a UK mortgage?

Buildings insurance is mandatory from exchange of contracts on virtually every UK mortgage. Life insurance, critical illness cover and income protection are optional but widely recommended, since they repay or service the mortgage if you die, are diagnosed with a serious illness, or cannot work.

How much does mortgage protection cost?

Indicative monthly costs for a healthy 30-year-old non-smoker on a £250,000 25-year mortgage: life insurance from around £6, critical illness from around £25, and income protection from around £20 for £1,500 of monthly benefit.

Should protection be written in trust?

For life and critical illness cover, usually yes. A trust keeps the payout outside your estate for inheritance tax and releases funds without waiting for probate. It costs nothing to set up at application.

Can I arrange protection through Mortgage.ai?

Yes. Elena sizes cover from your actual mortgage balance, term and income, then compares insurers on both price and policy wording — condition definitions and claim definitions, not just headline premium.

Income protection

Your salary, insured monthly.

Up to 70% of your income paid tax-free while illness or injury keeps you off work — for employees, contractors and the self-employed.

AI summary

Income protection insurance is UK cover that replaces 50–70% of gross earnings as a monthly tax-free benefit when illness or injury prevents you working. Benefit starts after a deferred period of 4, 8, 13, 26 or 52 weeks — the longer the wait, the cheaper the premium — and either runs to retirement (full-term) or for a capped period of 12–24 months (short-term). A healthy 30-year-old office worker covering £1,500 a month with a 13-week deferred period pays around £20–£35 monthly. Self-employed applicants are assessed on net profit or salary plus dividends, and own-occupation claim definitions offer the strongest protection.

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Key facts

The numbers, at a glance.

From

£20/mo

Benefit

50–70% of income

Deferred period

4–52 weeks

Payout

Tax-free monthly

Eligibility & documents

What lenders want to see.

Who typically qualifies

UK resident aged 18–59, working 16+ hours a week
Employed, contractor, sole trader or company director
Benefit capped at 50–70% of gross earnings
Deferred period matched to employer sick pay or savings runway
Manual and higher-risk occupations quotable at adjusted rates

Documents to prepare

Evidence of income — payslips, SA302s or company accounts
Occupation details and duties breakdown
Employer sick pay entitlement (to set the deferred period)
Medical history and current medication
Mortgage and essential outgoings figures

Why us

How Elena helps, specifically.

Covers the mortgage

Benefit sized around your mortgage plus essential household bills.

Deferred period tuned

Matched to your sick pay so you never pay for cover you can't use.

Own occupation

We prioritise the strongest claim definition available for your role.

Self-employed friendly

Net profit or salary-plus-dividend assessment, averaged fairly.

Short or full term

Cap the benefit period to cut cost, or cover through to retirement.

AI-matched

Elena ranks insurers on occupation class, definitions and price.

What Elena recommends

Top insurer matches for this cover

Best match

The Exeter

Income One Plus · £1,500/mo

£23/mo

representative rate

Match score95%

"Best value own-occupation cover, strong with self-employed applicants."

LV=

Flexible Protection Plan · £1,500/mo

£29/mo

representative rate

Match score91%

"Excellent claims record and flexible benefit-period options."

Aviva

Living Costs Protection · £1,200/mo

£18/mo

representative rate

Match score84%

"Lower-cost short-term route covering essential outgoings only."

FAQ

Questions, answered.

Can't find your answer?

Elena, our AI mortgage expert, can answer it in seconds — or book you a free callback with a human broker.

What is income protection insurance?

Income protection pays a monthly tax-free benefit — typically 50–70% of gross earnings — if illness or injury stops you working. Payments start after a chosen deferred period (4, 8, 13, 26 or 52 weeks) and continue until you return to work, the policy ends, or retirement, depending on whether you choose short-term or full-term cover.

How much does income protection cost in the UK?

A healthy 30-year-old office worker covering £1,500 a month with a 13-week deferred period pays roughly £20–£35 a month for full-term cover. Manual occupations, shorter deferred periods and own-occupation definitions increase the premium.

Do self-employed people need income protection?

Arguably more than employees, because there is no employer sick pay. Insurers assess self-employed income on net profit or salary plus dividends, usually averaged over the last 12–36 months.

What is an own-occupation definition?

The strongest claim definition: the policy pays if you cannot do your own job, rather than any job you are suited to. Always prefer own occupation where your role is specialised.

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