Life insurance,
sorted.Simple, easy, stress-free

How it works

Our simple process

What makes Habito Life Insurance different?

Historically, getting life insurance has been a complicated and unpleasant process; with long paper forms, medical appointments and pushy salespeople. We’ve solved that by building a super fast, easy and non-intrusive life insurance product directly into the mortgage journey.

Habito Life Insurance is available exclusively to Habito customers. We use the information you've already given us for your mortgage, so getting life insurance is simple – no answering questions twice!

Every Habito customer who qualifies is given free no-strings-attached life insurance cover for up to 90 days. If you decide to keep the policy, paid cover with competitive rates then kicks in seamlessly.

Frequently asked questions

How do I make a claim?

You can call our claims line on 020 3758 9742 or write to us at: Habito Insurance Claims, 50 Mark Lane, London, EC3R 7QR.

When a claim is made, life insurance benefits are paid in full in one payment to your loved ones. They can choose to use the money however they want.

Some people use the funds to pay off their mortgage, but they can equally be used to care for children, pay school or tuition fees, and cover day-to-day living expenses.

Life insurance benefits may be liable to inheritance tax laws, depending on whether they are held in trust, payable to a surviving spouse, or the value of the estate.

You should speak with a financial adviser if you’d like to know more about inheritance tax.

Why do I need life insurance?
If you have a partner, children, or elderly parents who depend on you for support (financial or otherwise), then life insurance would provide them with a financial safety net, should something unexpected happen to you.
Why life insurance and mortgages?

Life insurance goes hand-in-hand with mortgages as it helps to protect the biggest asset you're likely to own.

When getting a mortgage it's important to think about how future payments would be made if you died.

As getting life insurance requires a lot of personal information that we will have already collected in the mortgage journey, we can provide you with life insurance without lengthy forms or doctor’s appointments.

How do I qualify for Free Life Insurance with Habito?

Every Habito customer who qualifies is given free no-strings-attached life insurance cover for up to 90 days.

In order to qualify for Free Life Insurance you must not have had free cover with us before.

You will also be asked a set of questions about your health and lifestyle. Your answers will determine whether you pass the eligibility criteria set out in our policy.

There's no catch on our free cover - we have designed it so that you're covered for 30 days after completion so you can settle into your new home (or relax after remortgaging) until you're ready to think about life insurance again.

Paid cover is then opt in rather than opt out. If you want to continue to be covered, you can come back and get a quote at any time.

When is the right time to take out life insurance?
The most common trigger to consider life insurance is when someone, usually a spouse or child, depends on you to cover mortgage payments. The younger you are, the more affordable your monthly life insurance payments are likely to be.
What is the right type of policy for me?

There are two main types of policies: level term and decreasing term. The one that’s right for you depends on a few factors, including the type of mortgage you have.

A level term policy is a popular way to cover interest-only mortgages, while a decreasing term policy is a popular way to cover repayment mortgages.

Level term policy: A level term policy is by far the most popular type of life insurance cover in the UK. It lasts for a fixed length of time, such as 25 years, and will only pay out the agreed lump sum if you die during that period. If you live beyond the end of the term, the cover lapses and you receive nothing.

Decreasing term policy: Decreasing term life insurance (or mortgage term life insurance) also only pays out a lump sum if you die during the fixed cover period, but the payout amount gradually decreases over time and premiums are lower as a result. It’s usually taken out to cover a specific debt such as a repayment mortgage in the event of your death and so it tracks your loan term.

For more information, read our blog post about the different types of life insurance policies out there.

What is the right level of cover for me?

This really depends on your needs and circumstances. As your needs change over time, you can change your level of cover.

Decreasing term policy: Decreasing term life insurance (or mortgage term life insurance) also only pays out a lump sum if you die during the fixed cover period, but the payout amount gradually decreases over time and premiums are lower as a result. It’s usually taken out to cover a specific debt such as a repayment mortgage in the event of your death and so it tracks your loan term.

How do I update or change my life insurance policy?

Habito Life Insurance offers flexible cover. If you want to increase or decrease your cover, or cancel your policy, you can do this from your dashboard.