Buying a home is a major milestone, and often one of the most expensive. With so many costs to juggle, you might wonder why you’d add life insurance to the list. But when you think about the size of your mortgage, it’s clear why protecting it matters.

The fact is, your monthly mortgage payment will likely be the biggest regular cost you’ll face, every month, for years to come. Your mortgage still needs to be paid each month after you die, so you would potentially be leaving a huge financial burden behind, and not necessarily an asset.

A mortgage life insurance policy gives you the reassurance that, should the worst happen, your loved ones can stay in the home without worrying about the monthly repayments. The level of cover will typically match the outstanding mortgage balance. That means the mortgage can be paid off in full when the policy pays out.

Lenders don’t tend to insist that you take out life insurance alongside a mortgage. But you should still think carefully about what would happen should you pass away before your mortgage is paid off.

Ask yourself, what would happen if you weren’t around to make the mortgage payments? Would people who share the house with you be able to comfortably make those payments, potentially for many years to come? Or would you be leaving a painful debt to a partner, children or other dependents?

Even if you are a single homeowner with no dependents, it may still be a good idea to take out mortgage life insurance. That’s because you can add critical illness cover to the policy. It’s a type of insurance that can pay off your mortgage should you suffer from one of the conditions or injuries covered by the policy.

For some people, the only type of life insurance they take out is their mortgage-related policy. That may be all they need. But here again, it depends on what will happen should you pass away.

If you have dependents, think about the other costs they will still face if you die. Home insurance, council tax, utility bills, monthly subscriptions, groceries, holidays, childcare costs… the list goes on and on.

If you have dependents and your income is crucial to them coping financially, that’s why you may wish to look at taking out further life insurance in addition to your mortgage policy.

Taking out life insurance can be a big decision. Here are a few things to keep in mind:

• Joint vs single policies: Joint policies are cheaper, but typically only pay out once. Two single policies can offer more protection, but cost more.

• Premiums can increase: Depending on the policy type, your monthly cost may go up over time.

• Missed payments matter: If you stop paying, your cover could end.

• Not all illnesses are covered: Make sure to check the fine print if adding critical illness cover.

• The payout isn’t automatic: If your policy isn’t written in trust, your family may need to wait for probate.

If you’re unsure which policy is right for your family, it can be helpful to speak with a financial adviser.