Life Insurance
Mortgage Protection Insurance
Life insurance sized to your mortgage, so your family has money available to help keep the home if something happens to you. We compare options from 15 national insurance companies and explain how each one pays.
How It Works
How Mortgage Protection Works
Your mortgage is often the largest bill your family would face without your income. Mortgage protection is life insurance with a death benefit and term chosen to match your mortgage, so the money is there to pay it off or keep making payments.
There are two kinds, and the difference matters:
- Lender-offered mortgage life insurance usually pays the lender directly, and the benefit often shrinks as the loan balance goes down.
- Mortgage protection through an independent agent is typically an individual life insurance policy that you own. You choose the beneficiary, and your family decides how to use the money, whether that is paying off the house or covering other needs first.
Some policies include living benefit riders that may help if you face a qualifying serious illness, and some offer a return-of-premium option. Features vary by insurance company, so we show you exactly how a policy pays before you apply.
Mortgage protection is different from private mortgage insurance (PMI). PMI protects the lender if you stop paying; it does nothing for your family.
Who It Fits
Who Mortgage Protection Fits
- New homeowners who just closed on a mortgage
- Families who depend on two incomes to make the payment
- Homeowners who refinanced or took on a larger loan
- Anyone whose coverage through work would end if they changed jobs
If your needs go beyond the house, such as replacing income or paying for college, a larger term life policy may cover the mortgage and those needs together.
Get the Mortgage Protection Checklist
A short checklist of what to look at before you choose coverage for your home: how the policy pays, how long it lasts, and what happens if you refinance or sell.
FAQ
Mortgage Protection FAQ
Is mortgage protection required?
No. Lenders may require PMI with a small down payment, but mortgage protection is always optional.
Who receives the money?
It depends on the policy. Lender-offered coverage usually pays the lender. An individual policy pays the beneficiary you name, who can use it as your family needs.
What happens if I refinance or sell my home?
An individual policy you own stays in force when you refinance or move. Lender-tied coverage may end with the loan.
How long should the coverage last?
Many families match the term to the years left on the mortgage. A policy review helps you choose an amount and term that fit.
Help Your Family Keep the Home
A no-cost policy review compares mortgage protection options across insurance companies, with no obligation.
Photos are for illustration only and do not show clients. This page is general information, not a recommendation or advice for your situation. Mortgage protection is life insurance; it does not make mortgage payments automatically unless the policy says so. Coverage, riders, return-of-premium options, and premiums depend on underwriting and the issuing insurance company, and availability varies by state.
Source: Life Insurance consumer guide, NAIC.