Life insurance when renting

Life insurance could protect you and your loved ones the same way, whether you’re renting your home, or you own it. But the things you might need to consider if you’re thinking about taking out life insurance as a tenant might be slightly different. 

One thing to consider while renting is whether any family left behind would be able to keep up with the rent payments if you passed away. If they could manage the rent, would they still be able to save for the things they’d like to save for while renting without your support? While death doesn't automatically end a tenancy, it's important to read the tenancy agreement and talk to the landlord if you're unsure of the terms. The outcome for your family could also depend upon factors such as whether or not you had a will in place. 

Life insurance policies are designed to pay out in the event of the life covered's death, so whether you rent or own a property, this outcome would be no different and those closest to you could be protected in the same way.

You might be thinking about the needs of your loved ones and what essential bills or payments there may still be if you were to pass away. Choosing the right type of life insurance policy could help you ensure those you leave behind are able to meet the regular rent payments after you're gone.

If you choose a life insurance policy with level term cover, you'll be choosing a specific cover amount and deciding on a fixed length of time you’d like the policy to run for. You'll pay the same monthly amount for the duration of the policy. It's important to remember though that these policies have no cash in value at any time and if your payments stop, so does your cover.

With a level cover policy, if the worst happens and a claim needs to be made, the lump sum payment could help your family to maintain their standard of living, and can go towards paying monthly payments, such as rent or bills. However, it’s worth bearing in mind that because your payments stay the same, the fixed cover won’t increase as the cost of living rises.

At Aviva we offer both level cover and decreasing cover. Find out more about the different types of life insurance.

Sometimes, we worry what might happen if we fall ill, or get injured, and can’t work. This could be especially difficult if you’re a tenant with rent due each month. We've set out two possible options below. Please note, there is no cash-in value at any time with either of these policies.

Our income protection plan acts as a safety net and will cover a portion of your loss in earnings. It will pay out a guaranteed income if you're unable to work due to illness or injury. This may help to keep your monthly outgoings in check. 

Our Critical Illness Plan helps to cover you and your loved ones at a difficult time. It will give you a lump sum if you’re diagnosed with an illness that’s outlined in the policy’s terms and conditions.