Buying a first home is a huge milestone — and a major financial commitment. But according to recent FCA-backed research, nearly 30% of UK mortgage holders under 40 have no life insurance. That means many young homeowners are financially exposed if the worst were to happen.
This article explores why this protection gap exists, what the consequences might be, and how simple (and affordable) it can be to put the right cover in place.
A Mortgage Is a Responsibility — Not Just a Milestone
A mortgage is likely the biggest debt many people will ever take on. It’s not just about owning bricks and mortar — it’s about protecting a future for you and your loved ones.
But if you were to die unexpectedly, your mortgage debt doesn’t disappear. It could become a major burden for your partner, family, or estate — potentially forcing a house sale at the worst possible time.
That’s why life cover is one of the most important (but often overlooked) forms of financial protection for mortgage holders — especially those under 40.
Why So Many Under-40s Go Without Life Cover
There’s no single reason nearly a third of young homeowners don’t have life insurance. Instead, it’s often a combination of:
● “It won’t happen to me” thinking — younger people naturally feel invincible
● Perceived high cost — even though premiums for healthy under-40s can be under £10/month
● Lack of awareness — not knowing what cover is for, or how it works
● Financial pressure — deposits, fees and moving costs often take priority
● Misplaced confidence in employer schemes — ‘death in service’ cover is limited and job-dependent
The Risks of Going Without Life Cover
If you don’t have life insurance and something happens to you, your family could face:
● The loss of your home if they can’t keep up with mortgage payments
● Extra emotional and financial strain during an already difficult time
● A forced sale of other assets to pay off debt
● Long-term consequences for children and dependants
That’s a lot of risk — especially when the solution can cost less than a takeaway per month.
What Type of Cover Do You Need?
There are two common types of life insurance used for mortgage protection:
● Decreasing Term Life Insurance
is best suited to repayment mortgages. The payout reduces as your mortgage balance decreases. It’s usually the most affordable option.
● Level Term Life Insurance
offers a fixed lump sum regardless of your mortgage balance. Useful if you want additional funds to support family or dependents.
If you’re not sure which is right, an independent advisor can help match the right policy to your needs.
When to Review or Take Out Life Cover
You should definitely consider life cover if:
● You’re buying a home for the first time
● You’ve remortgaged or released equity
● Your personal situation has changed (e.g. marriage, children, self-employment)
● You’ve never reviewed your protection since taking out your mortgage
The good news? It’s easier than ever to arrange — and the younger and healthier you are, the cheaper your premiums will likely be.
How Argyll Drummond Can Help
At Argyll Drummond, we offer more than mortgage advice. We help you look at the full picture — including protection that ensures your family won’t face hardship if life takes an unexpected turn.
● We compare policies across the market
● Explain the pros and cons in plain English
● Match cover to your needs and budget
● Bundle protection into your mortgage review
No jargon. No pressure. Just advice you can rely on.
Final Word
If you’re a young homeowner, don’t assume life cover is something to sort “later.” It’s one of the smartest, most generous financial decisions you can make — and it could secure your family’s future in their most vulnerable moment.
Don’t let your loved ones be part of the 30% left unprotected.
Contact Argyll Drummond today for a no-obligation chat about your mortgage and protection options.