How much do I need to insure for?

If you are insuring against your mortgage then you need protection equal to the capital sum outstanding on your mortgage. You also need to get the insurance for the same number of years that are left on your mortgage.

All insurance policy payouts are tax-free.

IMPORTANT:
If you are looking for insurance that would make your monthly mortgage repayments if you were off work through sickness, accident or unemployment, then get Mortgage Payment Protection Insurance.

If you need insurance that repays your mortgage off in full if you become critically ill, you need Critical Illness Insurance.