We regret to inform you that we are no longer accepting new customers.

If you’re looking for cover, Smart Insurance offers Family Life Insurance that could help your family to manage major household debts like the mortgage and car repayments, or simply help with daily living expenses if the worst were to happen. Please call them on 0800 977 6057 for your free quote, or visit their website www.smartinsurance.co.uk 

Please note: If you’re an existing customer, your FRANKLi policy remains unaffected. Please call FRANKLi customer service on 0800 542 7981 if you have any questions. 

What is Mortgage Life Insurance?

We get it, you want to protect your family without the hassle. While it might seem intimidating at first, we can break everything down for you. Don’t worry though, there are just a few key things you should know when considering Mortgage Life Insurance. 

What is Mortgage Life Insurance?

Mortgage Life Insurance is a type of Life Insurance that is designed to be used to help with large loans such as a mortgage if you were to pass away. While it is called Mortgage Life Insurance, it doesn’t necessarily have to cover your mortgage; it can be used to protect other large loans you might have.

The main difference between it and other types of insurance is that the payout amount decreases over time. This is to roughly match how the debt will decrease over time as you pay it back. You may have also seen it referred to as decreasing Life Insurance in other places. It is designed for the same purpose. 

What is decreasing term Life Insurance?

Any time you see the topic of decreasing term Life Insurance you can think of it as being very similar to Mortgage Life Insurance. When you are getting Life Insurance sorted out you will be hearing about two things, the benefit and the term. The benefit is the word that insurers use to refer to the payout and the term is the word they use to refer to how long the insurance policy will last. For some Life Insurance policies, the benefit amount will remain fixed for the entirety of the policy. With decreasing term Life Insurance the benefit amount decreases over the duration of the policy. This kind of insurance is designed for people with mortgages or large loans. 

Why should you consider Mortgage Life Insurance?

There are a few possible reasons why you should consider an insurance policy like this. If you have recently gotten married, purchased a house or are expecting, a Mortgage Life Insurance policy could be worth considering. If you were to pass away unexpectedly would your loved ones be able to cope with the outstanding debts? It’s common enough for people to have a mortgage but what about other types of financial commitments? You may have a loan for your car or even different renovations around the house. Mortgage Life Insurance can provide you with peace of mind that if the tragedy was to strike there is something there to support your family.  While you might consider yourself to be in perfect health, tragedy can strike at any time. This type of Life Insurance can allow life to continue on. 

How does Mortgage Life Insurance work?

While it might differ in certain specifics, the mechanics of how this type of Life Insurance works is similar to others. There are two things you should consider when getting any type of Life Insurance:

How much would you like the policy to payout?

In order to do this, you need to first sit down and look at all of the outstanding debts you might have. For some, this could be just their mortgage and for others, it could be a car loan or other smaller personal debts. The important thing here is to come to a figure that could go some way to paying off all or most of these debts. 

How long would you like the cover to last?

The answer to this question will depend on how long is left to pay off on your loans. This is something that you will need to let us know about. At FRANKLi, we won’t be contacting your mortgage provider so we won’t know how long you have left to pay off. The idea is that because the payout of the policy will decrease it should be roughly in line with your debts. This is why it’s vital to consider how long you have left on the loan. 

The answers to these questions are ultimately up to you and are specific to your own personal situation. Once you have the answer to these questions you can get in contact with us online by submitting a form or giving us a call. There will be a few health and lifestyle questions but you won’t have to submit a medical when you are applying. 

Calculating the premium

When you give us the two figures of how long you would like the cover for and how much, we will give a figure that’s known as your monthly premium. Your monthly premium is how much you have to pay each month in order to maintain cover. In order to maintain cover for the duration of the policy, you will need to make sure that you can pay this premium not only now but further down the line. The policy will hopefully last for more than a few years, so it’s important to not only consider your ability to pay right now but in a couple of years time. If you miss a couple of payments you could end up in a situation where your family is vulnerable. 

Finalising the policy

Once you have agreed on those details, you will be asked to provide your bank details. This information is needed so that you can pay for your Life Insurance policy. The payment is made by direct debit and in order to set one up, your bank details are required. You can be sure that it is a secure process. 

There is no waiting period with FRANKLi, so you’re covered from day one (except if death is the result of self-inflicted injury in the first 12 months). The policy details will be sent out to you by post and if you have any questions you can get in contact at any time. If you change your mind and think this policy isn’t right for you, you have 30 days to cancel.

How much does Mortgage Life Insurance cost?

The answer to this question is very much dependent on your own personal needs and the needs of your family. Our policies start from around £5 per month, but your policy could end up costing more than this. This will also very much depend on the amount of money you want your payout to be. In turn, the amount of money you have access to will depend on your age. Here is a breakdown of these amounts:


  • £120,000 (aged 18-24 at start date)
  • £80,000 (aged 25-29 at start date)
  • £60,000 (aged 30-34 at start date)
  • £40,000 (aged 35-39 at start date)
  • £20,000 (aged 40-84) at start date)


  • £750,000 (aged 18-39 at start date)
  • £600,000 (aged 40-44 at start date)
  • £400,000 (aged 45-49 at start date)
  • £300,000 (aged 50-64 at start date)
  • £100,000 (aged 65-74 at start date)
  • £50,000 (aged 75-84 at start date)

The main factors that affect the final cost of your premium are dependent on your age, current health status and what kind of a benefit you are looking for. It’s important to mention as well that you should always be completely honest on a Life Insurance application. Providing false information or not disclosing the current state of your health could mean that you are not covered properly. This in turn could leave your family vulnerable to the things you are trying to protect them against.

Do you need Life Insurance to get a mortgage?

One common query you often see is if it’s a requirement to have Mortgage Life Insurance in order to get a mortgage. While there are certain mortgage providers that don’t require it, there are quite a few that do. There is no hard and fast rule when it comes to this, but in order to have as many options open to you as possible, it could make sense to get a Life Insurance policy. 

Should you get Mortgage Life Insurance from your mortgage provider?

Some mortgage providers may offer a Life Insurance product when you are applying with them. While this can seem like an easy option, it might not be right for you. When choosing your Mortgage Life Insurance it’s important to shop around to make sure you’re getting the right protection for your needs. 

With FRANKLi, you’re covered from day one (except if death is the result of self-inflicted injury in the first 12 months) so you can have peace of mind that you’re protected right away. Not only that, but there are also a range of benefits included in your policy such as a free Will Kit, access to free healthcare services, a mortgage guarantee and our Funeral Pledge, to name a few. T&Cs apply.

Get protection without the stress

We all want the best for our loved ones. At FRANKLi we believe that it shouldn’t be stressful or confusing when you are trying to protect your loved ones. When you’re ready to get financial protection for them, we are here to support you. With Mortgage Life Insurance you can get peace of mind knowing that if something happened life for your family can continue on.