Keep the house in the family, whatever happens
For most families the mortgage is the biggest bill they have. Mortgage protection is life insurance sized to that loan, so the people you love can stay in the home you worked for.
Paid to your family, not the lender
A mortgage protection policy is usually a term life policy whose amount and length match your mortgage. If you die while it is in force, the benefit goes to your beneficiaries, not to the bank.
That detail matters. Your family decides what happens next: pay the mortgage off entirely, keep making the monthly payments and hold on to the rest, or use part of it for property taxes, repairs, childcare or anything else that comes up. The choice is theirs, which is exactly how it should be.
Options worth asking about
Features vary by insurer, but these are the ones homeowners most often want explained.
Living benefits
Some policies let you draw part of the benefit early if you are diagnosed with a terminal, chronic or critical illness, while you are still here to use it.
Income protection
If an illness or injury kept you out of work, how would the payment get made? Ask about coverage designed to help replace a paycheck.
Return of premium
Some term policies refund the premiums you paid if you outlive the term. They cost more, so we will show you both versions.
Both borrowers
Two names on the mortgage? Both of you can be covered, with separate policies or, at some insurers, one joint policy.
Level or decreasing
Keep the full benefit for the whole term, or pay less for a benefit that falls as your balance does.
Room for more
A benefit larger than the loan can also cover lost income, final costs or a head start on college.
What to have handy
None of this is required to get started, but it makes the first conversation quicker and the quote more accurate.
- Your current mortgage balance and the number of years left on the loan
- Your monthly payment, including taxes and insurance if they are escrowed
- Who else is on the loan, and who depends on the house
- Any life insurance you already have, personally or through work
- A rough outline of your health history and medications
Is mortgage protection the same as PMI?
No. Private mortgage insurance protects your lender if you stop paying the loan, and your family gets nothing from it. Mortgage protection is life insurance on you, and it pays the people you choose.
Does the benefit shrink as I pay down the mortgage?
It depends on the policy. Level term keeps the full benefit for the whole term, so your family may have money left over after the house is paid off. Decreasing term costs less because the benefit drops along with a typical loan balance. We will make sure you know which one you are looking at.
I just closed on a house and I'm getting lots of mail about this. Is it legitimate?
Often it is. Mortgages are public record, and insurers and agents use them to send offers. The mail is not from your lender, and you are under no obligation to respond. It is a good reminder to compare real options before you pick one.
What happens if I refinance or sell?
Because mortgage protection is a life insurance policy on you, not part of the loan, it stays in force when you refinance. If you sell or pay off the house early, you can keep the coverage for your family or adjust it.
Find out what it costs to cover your mortgage
Share your loan balance and how many years are left, or just call. We will price a policy that matches it, show you options with and without living benefits, and let you decide in your own time.
Want coverage beyond the house? See term and whole life.
Mortgage protection is life insurance and is not issued by or connected to your mortgage lender. Riders, living benefits and return-of-premium options vary by insurer and state, may add cost, and are subject to policy terms. All coverage is subject to underwriting.