What is mortgage protection insurance? 

You may already know how important it is to protect your home and its contents. But it’s also important to think about how you might pay for your mortgage if the worst happens.

That’s how life insurance and critical illness cover can help. It gives you peace of mind that if you were to die or become too ill to work, the money your policy pays out could help cover your mortgage.

How does mortgage protection insurance work?

Life insurance pays out a cash lump sum if you die. Critical illness cover pays out a cash lump sum if you are diagnosed with an illness covered by your policy before it ends. It’s designed to help you and your loved ones cope financially if something happens to you.

When you apply for your policy, you can choose to be covered by life insurance, critical illness cover, or both. You'll then select the size of the cash lump sum and how long you want to have this cover.

You’ll pay the same amount each month by Direct Debit until your policy ends.  Your policy doesn’t have a cash-in-value. This means that if it ends without a claim, then you won’t get the money back.

Make sure you can pay each month on time, or your cover will stop and you’ll get nothing back.

Scottish Widows protection products have no cash-in value at any time. So if the policy ends without a claim, you won't get any money back. If you don't make payments on time, your cover will stop, your policy will end and you'll get nothing back.

Is mortgage protection insurance right for me?

Life insurance and critical illness cover might be right for you if:

  •  you have children or loved ones who rely on your income
  • you’re the main earner in your family
  • you’d like to make sure your loved ones can keep their home after your death
  • your loved ones would struggle to pay off the mortgage without you
  • you’d like to have a cash lump sum if you became seriously ill
  • you'd like to focus on your health and wellbeing.

Do I need this cover to get a Halifax mortgage?

No, you don’t need this cover to take out a mortgage with us, but it’s something to think about. It’s one less thing for you and your loved ones to worry about if something happens to you.

Video about Mortgage protection Insurance.

Here are two types of cover you may want to think about:

Life insurance

Life insurance pays out a cash lump sum if you die before your policy ends. 

It can act like a safety net, and could help your loved ones cope financially when you can’t be there. For example, they could use the money to help pay off your mortgage.

Find out about life insurance

Critical illness cover

Critical illness cover pays out a cash lump sum if you are diagnosed with an illness covered by your policy before it ends. 

The money could help you and your loved ones meet day-to-day costs and let you focus on your own health and wellbeing.

Critical illness cover

Your cover options

We can offer level or decreasing cover for both life insurance and critical illness cover. Here’s what they mean:

Infographic visualising level cover.

Level cover - cover and payments stay the same

How does level cover work? 

Level cover means that the cash pay-out stays the same until your policy ends. You'll pay the same amount each month. 

What else do I need to know? 

  • This kind of cover is often used to help with living costs or to pay off a mortgage.
  • The cash pay-out stays the same, so you and your loved ones will always know how much support they have.

Infographic visualising level cover.

Decreasing  cover - cover reduces but payments stay the same

How does decreasing cover work? 

Decreasing cover means that the cash pay-out goes down each month until your policy ends. You'll pay the same amount each month, and it's usually cheaper than other kinds of cover.

What else do I need to know? 

  • This kind of cover is often used to protect a repayment mortgage.
  • As you pay off your mortgage, the remaining balance goes down. So the amount that your cover pays out, when you die, will go down too.

Get protected by experts

Scottish Widows provide our protection policies. They’re part of Lloyds Banking Group, like us.

Scottish Widows are our protection experts, and they’ve been protecting what matters most for 200 years. 

Scottish Widows protection products have no cash-in value at any time. So if the policy ends without a claim, you won't get any money back. If you don't make payments on time, your cover will stop, your policy will end and you'll get nothing back.

 

Need to speak to someone?

Cavendish Online is here to help find the cover that is right for you.

Like us they are part of Lloyds Banking Group. They'll give you guidance on Scottish Widows life insurance and/or critical illness policies.

Trustpilot rate them as 'Excellent' 4.9/5.

They won't charge you for their guidance and you do not need to take the product as a result of speaking to them.

Call: 0800 131 0299

Lines are open Monday to Thursday 10am -7pm, Friday 10am- 6pm.

Or request a call-back at a time that suits you.

Request a call-back

Ready to get a quote?

If you have a mortgage with us and want to know about more protection options:

Make an appointment with one of our Mortgage and Protection Advisers.

Here’s how one of our advisers can help:

  • Find a protection policy that’s right for you and your loved ones.
  • Get life insurance or critical illness cover up to £500,000.
  • Apply for single cover just for you, or joint cover with your partner.
  • Choose level or decreasing cover.
Book a branch appointment Book a branch appointment here.

If you’re ready to get a quote online:

Get a quote and decision in under 10 minutes. Simply sign in to Online Banking or use your Mobile Banking app.  Just look for ‘Life insurance’ in the Product menu to start.

You can apply online for:

  • protection policies provided by Scottish Widows
  • Life or critical illness cover up to £500,000. Critical Illness includes an early-stage cancer payment of £5,000, on top of the agreed lump sum
  • single cover for one person
  • level cover - the cash pay-out stays the same until the policy ends in a similar way to the amount owed on an interest-only mortgage.
Get your quote now Get your quote now.

You could lose your home if you don’t keep up your mortgage repayments

Mortgage calculator

Use our mortgage calculator to see our current mortgage deals. You can get an idea of how much you could borrow and compare what the monthly payments will be. 

Mortgage calculator

Agreement in Principle

It’s quick and easy to apply for an Agreement in Principle. Find out how much you could borrow. 

Apply for an Agreement in Principle

Frequently asked questions

  • Some lenders might ask you to get life insurance when you apply for a mortgage. In any case, you should think about what's best for you and your loved ones. If you die, life insurance could help pay off your mortgage and allow your loved ones to keep your home.

  • We can’t give you advice or tell you what to do. But we want to make sure you get the help you need.

    If you’d like advice, then contact Cavendish Online. They can help find cover that’s right for you and your loved ones.

    Cavendish Online can advise you on Scottish Widows protection policies. They won’t charge you for their advice, and you’re under no obligation when you speak to them.

    Call Cavendish Online on:

    0800 131 0004

    Lines are open Monday to Thursday 9am - 7pm, Friday 9am - 6pm.

    Cavendish Online is a part of Lloyds Banking Group.

    They'll provide you with advice on Scottish Widows protection products.

  • This kind of insurance covers two people, but it only pays out once. So if one person dies before the policy ends, the money paid out will go to the other person. Then the cover will end.

  • The policy will only pay out when a claim is made. So for life insurance, it only pays out if you die before your policy ends. For critical illness cover, it only pays out if you are diagnosed with an illness covered by your policy.

  • No. Your policy only pays out if a claim needs to be made. If your policy ends without a claim, then your cover will end and you won’t get money back.

    Make sure you pay each month on time, or your cover will stop and you’ll get nothing back.