Mortgage protection insurance
Mortgage protection insurance is life insurance used to pay off or help pay the mortgage if the borrower dies, so your family can stay in the home.
How mortgage protection works
Policies sold under this name vary. Some, often offered by lenders, pay the lender and shrink as your balance falls. A level term policy pays your family directly, so they can pay off the loan or use the money as needed. It is not private mortgage insurance (PMI), which protects the lender if you stop paying.
Choosing the right coverage
Match the term to the years left on your loan and the amount to your balance plus other needs like income and childcare. A 30-year term lines up with a new 30-year mortgage. Use our coverage guide to size the policy.
Pros, trade-offs and pricing
Pros
- Helps your family keep the home
- Term life can match your loan length
- Beneficiaries decide how to use the money
Trade-offs
- Coverage ends when the term does
- Lender-offered versions may pay only the lender
- Your family needs more than the mortgage alone
What affects your price
- Age and health
- Loan balance and term length
- Tobacco use
- Coverage amount
Frequently asked questions
What is mortgage protection insurance?
It is life insurance meant to pay off or support your home loan if you die. Many people use level term life for this.
Is mortgage protection the same as PMI?
No. PMI protects the lender if you default. Mortgage protection protects your family if you die.
Do I need mortgage protection insurance?
If your family relies on your income to pay the mortgage, coverage can prevent a forced sale. We will help you compare options.
Related coverage and guides
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