Category: Specific protection products · Reviewed by Simon Temme, Account Executive · Last reviewed 2026-06-10
Mortgage protection insurance is the colloquial term for life assurance taken out by a mortgage borrower to repay the outstanding mortgage on the borrower’s death. The product is normally either decreasing term assurance (matched to a capital-and-interest repayment mortgage) or level term assurance (matched to an interest-only mortgage). It may be combined with critical illness cover (where benefit also pays on diagnosis of a defined critical illness) and is typically arranged at the same time as the mortgage.
Category: Specific protection products Also known as: MPI, mortgage life cover Pair with: Mortgage of equivalent term Related concepts: Decreasing term assurance for mortgage protection, Critical illness cover for mortgage protection, Family income benefit
Mortgage protection insurance is not a single product but a marketing label for a family of pure protection products used to protect mortgage repayment risk. It is regulated under the FCA Handbook as protection insurance. Mortgage payment protection insurance (MPPI), which covers monthly repayments on accident, sickness and unemployment, is a distinct product (and one which has been heavily criticised historically due to mis-selling).
FCA regulated under ICOBS as pure protection. Tax treatment under IHTA 1984 — benefit paid through trust does not form part of the deceased’s estate.
For a £250,000 repayment mortgage over 25 years: matched DTA cover. For a £250,000 interest-only mortgage over 25 years: matched level term cover. For dual cover (death and critical illness), a combined life and CI policy with the higher of the two benefits payable on the relevant event.
A couple buying their first home with a 25-year £350,000 repayment mortgage take out joint life first death DTA cover at £350,000 reducing on a 7% basis. Premium £30 per month. On the death of either, the cover pays out to clear the mortgage.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
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