You’ve just got the keys. The mortgage is signed, the deposit is gone, and the reality of homeownership is hitting from every direction. Mortgage payments, council tax, a garden that needs sorting, a living room with no sofa.
And now your mortgage adviser is telling you to take out life insurance.
We heard from one of our listeners this week who’s feeling exactly this and we think her question deserves a proper answer. Because “just get life insurance” isn’t good enough when every pound is already accounted for.
Why Advisers Recommend It (And They’re Not Wrong)
This isn’t a sales tactic. If one of you died, could the other afford to keep paying the mortgage alone?
Our listener has already answered it herself: they both rely on each other’s income. No children yet, but two incomes propping up one very large financial commitment. Without cover, the surviving partner could be forced to sell the home at the worst moment of their life.
Can It Wait a Year?
Honestly? The risk of waiting isn’t zero. If something happened before a policy was in place, there’d be no cover. That’s unlikely if you’re both young and healthy but it’s worth knowing you’re making that choice with open eyes.
There’s also a small cost to waiting: premiums are based on your age and health at the time you apply so it’s probably cheaper now than it will be later.
What Does Life Insurance Actually Cost?
Probably less than you think. For a young, healthy couple, a basic decreasing term policy — the most common choice for mortgages, where the payout reduces in line with what you owe, it can cost as little as some of your streaming subscriptions.
The Emotional Side
Buying your first home is exciting and terrifying in equal measure. Being asked to spend more money planning for something you hope never happens can feel like too much.
But taking out life insurance is one of the most loving, practical things you can do for your partner. It says: if something happened to me, I don’t want you to lose the home we worked this hard for.
So, Is It Essential?
For this listener? Yes. Two incomes, one mortgage, neither could sustain it alone, and the emergency fund is still being rebuilt. The exposure of not having cover is a lot and the cost is probably smaller than expected.
Ask yourself:
- If my partner died tomorrow, could I keep the mortgage going alone?
- Do I know what life insurance would actually cost us?
- Have I compared policies, or just gone with what was suggested?
- Do either of us have existing cover through work?
💡 Top tip: Don’t feel pressured to take the policy your mortgage adviser recommends without shopping around. A basic decreasing term policy is a solid, affordable starting point and you can always review and increase cover as life changes.
We talked through this dilemma in full on this week’s episode of The Vault! Go give it a listen.