Life insurance quote.

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.

 

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Take care of what you value most, and we'll take care of you - a cashback reward with our range of insurance products: home, motor and life.

£50 cashback for two eligible insurance policies and £100 for three eligible policies.

If you purchase or renew a policy between 02 April 2024 and 02 July 2024. The policy needs to be held on 02 August 2024.

You must purchase new policies directly from Lloyds Bank online, by phone or in a branch. The policy cannot be purchased through a price comparison website.

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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:

Infographic visualising level cover.

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.

Infographic visualising decreasing cover.

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 and critical illness cover. 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 2022. That’s £199 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 and critical illness cover 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?

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 0297

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 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.

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.

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

 

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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.

  • We want to make sure you get the help you need.

    To get advice about mortgage protection, contact Cavendish Online. They can help find cover that’s right for you and your loved ones.

    Cavendish Online won't charge you for their advice, and you're under no obligation when you speak to them.

    Call Cavendish Online on:

    0800 131 0014

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

    Cavendish Online is a part of Lloyds Banking Group.

    They'll give you advice on Scottish Widows life insurance and critical illness cover products.

  • 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.