But there will be a few differences when securing cover as it’s likely renters and homeowners will require different types of cover.
Decreasing term life insurance is often best suited to those with a mortgage as your sum assured reduces over time and can reduce in line with mortgage payments.
This form of cover may not be the best option for someone who is renting as your rental amount will stay the same over time, or may even increase, meaning you’ll likely need a fixed sum assured.
Life insurance will also allow a homeowner to pay their mortgage off in full, whereas a renter will need to continue making monthly rent payments.
Therefore, level term life insurance or family income benefit may be more suited to a renter than decreasing term life insurance.