Mortgage Protection Insurance

Taking out a mortgage is likely to be the biggest financial commitment we’ll ever make in our lives. That’s why it’s important to plan for the unforeseen and ensure you have the right protection in place to give you and your loved ones peace of mind.

Get a Quick Quote

Try our free protection calculator for a quick protection quote.


We insure our mobile phones, our pets, our cars, but too often we have inadequate protection for ourselves or our families. The stats now tell us 1 in 2 of us will get cancer in our lifetime, which is why we believe there is never a bad time to review your financial protection.


Imagine what would happen if you were unable to work because of an accident, serious illness or even loss of life. It’s not something that any of us would ever want to contemplate but, by planning for the unforeseen you can make sure that you can pay your mortgage, protect your family’s lifestyle and have enough money to cover your everyday living expenses. 


During the process of buying your house our mortgage advisers will discuss the benefits of protection insurance. We recommend that all clients who take on a mortgage consider the benefits of having protection in place and our advisers will help you find a competitive price on policies. Equally, if you have already arranged a mortgage and don’t have protection in place our team can help.

Which mortgage protection policies are available through John Charcol?

Life Insurance

Covers you against: Death or terminal illness

Benefit paid: Lump sum

Life insurance provide a lump sum, paid tax free, to your dependents in the event of your death. Life insurance can also be known as term insurance and there are two main ways in which the cover can be arranged:

Level Term Assurance: this type of policy is where the amount of cover, which is also known as the ‘sum assured’, remains at the same level thorough the length of the policy. This type of policy is often taken out to help pay off a mortgage and is most suited to interest only mortgages, where the amount owed does not decrease over time.

Decreasing Term Assurance: again this policy pays out a cash lump sum in the event of death, but the amount of money paid out decreases over time. These policies are a good fit when taken out alongside a repayment mortgage so that the amount paid out is the same, or close to the amount left on the mortgage. As the amount of cover decreases over the length of the policy, the premiums are typically cheaper than they are for level term assurance.

The Financial Conduct Authority does not regulate will writing and taxation and trust advice.

Critical Illness Insurance

Covers you against: Critical illness

Benefit paid: Lump sum 

Critical illness insurance provides you with a tax free cash sum in the event you are diagnosed with one of a list of common defined critical illnesses. The cash sum you receive can be used however you like, but is designed to take the financial burden off you during a difficult period in your life. Critical illness, like life insurance, can be a fixed lump sum or can decrease in line with your mortgage.

Benefits can include: Free critical illness cover for your children.

Family Income Benefit

Covers you against: Death or critical or terminal illness

Type of benefit paid: Regular income

Family Income Benefit pays out in the event of death, but instead of a one-off lump sum of cash, it pays a regular, tax-free income until the end of the policy term. This can be a suitable option for people who would rather that their dependents receive a regular income, rather than a one-off lump sum.

Benefits can include: Hospitalisation benefit which pays out a lump sum payout if you are in hospital for a minimum of 28 consecutive days following an accident.

The Financial Conduct Authority does not regulate will writing and taxation and trust advice.

Income Protection

Covers you against: Illness or injury 

Type of benefit paid: Regular income

In the event of an accident or sickness income protection insurance pays out a monthly income to cover a proportion of your salary. You decide at the outset how many months before the policy will pay out (the deferment period) and how long it will continue to pay (the benefit period). This can be until you are either well enough to return to work, you reach retirement age or the policy term ends.  Income protection insurance provides you with the peace of mind of a regular on-going income that can help you maintain your lifestyle should you fall ill or have an accident and are unable to work.