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Mortgage protection

Make sure your home is protected should the worst ever happen to you with Scottish Widow’s life insurance and critical illness cover.

Father and son gardening.

What is mortgage protection?

It’s something that can give you extra peace of mind by helping to pay for your mortgage should the worst ever happen.

If you passed away or ever became too ill to work, the money your policy pays out from life insurance or critical illness cover could help cover your mortgage or support with healthcare costs.

How does mortgage protection work?

There are two types of insurance that can help protect your mortgage:

  • Life insurance – this is when a cash lump sum will be paid out if you die.
  • Critical illness cover – this is when a cash lump sum will be paid out if you become ill.

Both are specially designed to support you and your loved ones financially if something were to happen to you.

You choose what type of policy is best for you. Whether its life insurance, critical illness cover or both. You also decide the size of the cash lump sum and how long you want to be covered.

You’ll always pay the same amount each month by Direct Debit until your policy finishes. It’s also important to know that your policy doesn’t have a cash-in value. This means that if it ends without a claim, you won’t get the money back.

You must pay each month on time, otherwise your cover will stop, and you won’t get any money back.

Is mortgage protection 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 pay-out if you became seriously ill, to let you focus on your health and wellbeing.

Do I need this cover to get a Lloyds Bank mortgage?

You don’t. But we’d always recommend considering it to help give you and your loved one's peace of mind if something were to happen to you.

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

Life insurance

This acts like a safety net by paying out a cash lump sum if you die before your policy ends. This could help your loved ones cope financially by paying for things like your mortgage.

 

Find out about life insurance

Critical illness cover

This pays out a cash lump sum if you’re diagnosed with an illness covered by your policy before it ends.

This money could help you and your loved ones pay for day-to-day costs, so you can focus on your health.

Find out about 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:

Level cover

How does level cover work?

Level cover means that the cash pay-out stays the same until your policy ends, so 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, after you pass away.
  • The cash pay-out stays the same, so you and your loved ones will always know how much support they have.

Decreasing cover

How does decreasing cover work?

Decreasing cover means that the cash payout 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 outstanding amount goes down. This means that the amount that your cover pays out when you die will go down too.

Get protected by experts

Scottish Widows provide our life insurance policies. They're a part of Lloyds Banking Group, like us. Scottish Widows are experts, and they've been protecting what matters most for over 200 years.

Here are a few reasons why they could be the right choice to protect you and your loved ones:

An image of the Scottish Widows logo.

98% of claims paid out

Scottish Widows paid out 98% of claims in 2023. That’s £243 million in total.

Support when you need it

Scottish Widows works closely with partners like Macmillan Cancer support.

Over 200 years of experience

Scottish Widows has been protecting customers for over 200 years. So, you’re in safe hands.

Scottish Widows life insurance 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.

 

 

Want to speak to someone?

Our Lloyds Bank protection experts are here to help find the cover that is right for you.

They'll give you advice on Scottish Widows life and/or critical illness policies.

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

Call: 0800 131 0552

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

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

Lloyds Bank Insurance Services Limited provides this service, which is also part of Lloyds Banking Group.

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 an appointment in branch Book an appointment in branch.

If you’re ready to get a quote online:

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

You can apply online for:

  • Life or Critical Illness cover up to £500,000.
  • 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.

Critical Illness includes an early-stage cancer payment of £5,000, on top of the agreed lump sum.

Scottish Widows provide our life and critical illness cover.

Get your quote now Life insurance quote.

Useful links

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 were to die, life insurance could help pay off your mortgage and allow your loved ones to keep your home.

  • If you’d like advice, contact our Lloyds Bank protection experts. They can help find cover that’s right for you and your loved ones.

    They'll give you advice on Scottish Widows life and/or critical illness policies.

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

    Call:

    0800 131 0552

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

    Lloyds Bank Insurance Services Limited provides this service, which is also part of Lloyds Banking Group.

  • This kind of insurance covers two people, but if 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 will only pay out if a successful claim needs to be made. If your policy expires without a claim, your cover will terminate, and you will not receive any money back.