FRANKLi Guide to Mortgage Life Insurance

For many, taking out a mortgage can be one of the biggest financial responsibilities they’ll ever take on. It’s a commitment that can last for decades and failure to keep up with mortgage payments could have a detrimental impact on your loved ones. Mortgage Life Insurance is a way of making sure that if something were to happen to you before you’ve repaid your mortgage, that your family will have some financial help. It could allow your loved ones to continue to make the required payments.


The thing is, the process of buying Life Insurance can leave even the savviest person feeling confused. At FRANKLi, we understand the importance of providing straightforward answers to your Life Insurance questions. We want to help you make an informed decision so that you can feel confident knowing that you’ve secured the right policy for your needs. So what are some common misconceptions when it comes to Mortgage Life Insurance? 


I can’t afford Mortgage Life Insurance


If you believe you need Mortgage Life Insurance but you’re concerned that it may be unaffordable, don’t panic - financially protecting your loved ones could be cheaper than you think. When you buy Life Insurance with FRANKLi, you choose a benefit amount and a rate of monthly premiums you can afford.


With some careful planning, you could fit Life Insurance into your budget. All you have to do is calculate how much cover your loved ones will need should you pass away unexpectedly. Then, consider what you can realistically afford to pay each month. Here’s the minimum benefit amount that you can apply for depending on your age:


Minimum benefit amountBenefit acceptance date
£120,000 Age 18-24 at start date
£80,000 Age 25-29 at start date
£60,000Age 30-34 at start date
£40,000 Age 35-39 at start date
£20,000 

Age 40-84 at start date



Buying mortgage Life Insurance is too confusing


Confusing financial jargon shouldn’t stop you from putting protection in place for your loved ones. Mortgage Life Insurance can protect against outstanding mortgage payments in the event of your death, so it’s important that you get it right. But, if you’re finding it all a bit confusing, not to worry, we’ve made the process easy to understand.


If I’m fit and healthy, I don’t need Life Insurance


It’s a hard pill to swallow but even if you’re in peak physical health right now, things could change drastically at any given time. Even the healthiest of people can become victim to diseases like cancer or heart disease. What’s more, is, we’re all vulnerable to serious injuries or accidents. 


We can’t predict the future and while we can hope for the best, it makes sense to prepare for the worst. If you pass away unexpectedly, your loved ones could struggle to continue to pay off the remainder of your mortgage. Our Mortgage Life Insurance can help you put some financial protection in place for those you share a home with should something happen to you. 


I can’t get a joint Mortgage Life Insurance policy


We offer joint Mortgage Life Insurance that will pay out following the first death. Should either party on the policy pass away within the policy term, the benefit amount will be paid in full to the chosen beneficiaries.


I’m not the primary earner in my household, I don’t need Life Insurance


It can be a common misconception that only the primary breadwinner needs to take out Life Insurance. Stay-at-home parents or those who earn less than their partner might not feel the need to take out Life Insurance. If this is the case then consider how your family would financially cope with the loss of either paycheck. Not only that but the surviving partner may have to pay for childcare costs or extra help around the house following the loss of a parent. This too can put financial strain on families following the loss of a parent.


Mortgage Life Insurance can only be used to help with mortgage payments


When you take out Mortgage Life Insurance, you have the option of taking a policy that is worth more or less than the remainder of your mortgage. If you choose a benefit that is greater than the cost of your mortgage, some of the payout could be used by your family to help maintain a ‘normal’ way of life following the loss of a parent or partner. A Life Insurance payout can mean your loved ones have some extra cash to help with the smaller things that make us smile - a trip to the cinema, a picnic in the park, a day out at the local swimming pool.


I don’t have children, so I don’t need Life Insurance


Even if you don’t have children, you could still need Life Insurance. This is especially true if you have significant outstanding debt or joint loans with a partner, spouse or another individual. In some circumstances, your debt or unpaid loans could affect those you leave behind.


I can’t trust that the policy will pay out when the time comes


When you spend years paying into a Life Insurance policy, it’s vital that the policy pays out when the time comes. Your loved ones may be relying on a lump sum payment to help cover the cost of your mortgage. As long as you keep up with your monthly payments, you can rest assured that your family will receive a lump sum payment should they need to make a claim.


It might also put your mind at ease to know that FRANKLi Mortgage Life Insurance has a 5 Star Defaqto rating. Defaqto means you can trust in us to help you protect those who mean the most to you. Defaqto helps consumers tell which products and organisations provide high standard services and products. They analyse everything from pensions to Life Insurance and rate them on a scale of 1 to 5 to help you make an informed decision. 


The circumstances under which a claim can be made are as follows: 


Death by accident:  You’re covered from day 1 for death as a result of an accident. 


Death by any cause: You’re covered for death by any cause from day 1 (except if death is the result of self-inflicted injury in the first 12 months).


Terminal illness: The full benefit amount paid in advance if you are diagnosed as terminally ill with less than 12 months to live by a medical specialist.


We make it easy for your loved ones to make a claim. It’s our aim to process claims within days of receiving them, making sure your loved ones have a helping hand when they need it most. All you have to do to make a claim is call to 0800 542 7981. Our UK based team is available Monday to Friday 9:00am to 8.00pm. Alternatively, you can contact us at claims@frankli.com


I’m too young to need Life Insurance


If you believe that you’re too young to bother taking out Life Insurance, here’s why you could be wrong: Life Insurance premiums are generally cheaper the younger you are at your policy start date. A fit and healthy 38 year old will likely pay more than a fit and healthy 28 year old. It could make sense to try to secure a policy while you’re younger to get a better rate on your premiums. When it comes to putting protection in place for your loved ones, there is no better time than the present.


All Life Insurance is the same


No two policies are the same and there can be several differences in the policy details. With FRANKLi, we’ll help you make an informed decision and help you every step of the way with honest, reliable and easy to understand information. You’ll know exactly what you’re getting for your money and how much you will pay each month. Our team will happily answer any questions you might have in the lead up to securing a policy. 


I have to get Mortgage Life Insurance from my mortgage provider


Your mortgage provider might encourage you to take our Mortgage Life Insurance with them. For some lenders, Mortgage Life Insurance could even be a requirement. What you might not realise is that you don’t always have to get life insurance from or through your mortgage provider if they offer it.


I already have Life Insurance through work 


Your employer might offer employer-provided Life Insurance (sometimes known as death in service). This Life Insurance is often free or it is made available at a reduced cost while you're working for your employer. 


But what happens if you decide to leave your job? What if you’re let go? If your employer pulls the benefit? What if the benefit amount on offer is limited and isn’t enough to help your family get by when you’re gone? If you’re concerned that your death in service might not be enough, you could consider taking out a Mortgage Life Insurance policy that you have full control over. 


I can’t get enough cover


With FRANKLi you could secure a benefit amount of up to £750,000 depending on your age at your policy start date. 


Here are the maximum benefit amounts available depending on your age:


Maximum benefit amountBenefit acceptance date
£750,000Age 18-39 at start date
£600,000Age 40-44 at start date
£400,000 Age 45-49 at start date
£300,000Age 50-64 at start date
£100,000 Age 65-74 at start date


I will need to take a medical exam or share medical records


You won’t have to take a medical exam or share medical records with FRANKLi. You will however be asked a series of health and lifestyle questions during the application process. This will help us to determine your eligibility for your desired policy. 


Your Life Insurance questions answered...


We aim to leave no stone unturned when it comes to answering your Life Insurance questions. We hope that we’ve helped clear things up, making things a little easier for you. If there’s anything else you’d like to know, don’t hesitate to pick up the phone and speak directly with a member of our team. We can answer any other questions you might have. In the meantime, you can read our FRANKLi guide to understanding Life Insurance.