PolicySolutionsHelp your family stay in the home if you're no longer there to pay for it.
Mortgage protection is life insurance sized to your home loan. If you pass away, the payout goes to your family — not the lender. They can use it to cover the payments or pay the mortgage off, so no one is forced to sell the home at the hardest possible time.
The mortgage payments won't stop if you're gone — but this coverage can help your family keep making them. Start your request in about five minutes.
- Pays the family you name — not the lender
- Portable — keep it if you refinance or move
- Level coverage available — a benefit that doesn't shrink as you pay down
In short: Mortgage protection is simply life insurance sized to your home loan. If you die, the payout goes to your family — not the lender — and they can use it to cover or pay off the mortgage so they aren't forced to sell. A level-term policy sized to the mortgage balance can do the same job for less, so it's worth comparing both before you decide.
The bank's version pays the bank. Ours pays your family.
Lenders often offer their own "mortgage insurance" at closing. It can look similar to what we do — but who gets the money is completely different. Here's an honest, side-by-side comparison.
- The mortgage lender is the beneficiary — the payout goes to the bank first to pay down the loan. Only any amount left over above the balance goes to your family or your estate.
- Often decreasing coverage tied to the loan, so the benefit shrinks as your balance falls.
- Usually tied to that specific loan — typically not portable if you refinance or move.
- Your family is the beneficiary and can use the money however they need — pay off the mortgage, keep making payments, or cover anything else.
- You own it and name the beneficiary — you keep the same policy if you refinance or move.
- You can choose level coverage that stays put, and a licensed agent can price it against the lender's offer so you can compare the two side by side.
The coverage is sized to your mortgage, but it isn't locked to it — because you own the policy, the benefit is simply money your family can use for anything. See how the underlying term life works →
How mortgage protection actually works
It's simpler than it sounds — and one distinction matters more than any other.
What you're buying
A life insurance policy — usually term life — with a death benefit sized to your mortgage balance and a term matched to the years left on your loan. If you pass away during that period, your beneficiaries get the payout to keep up with or pay off the mortgage.
It is NOT the same as PMI
This is the big one. Private mortgage insurance (PMI) protects the lender if you default, and pays them. Mortgage protection insurance pays your family if you die. They solve completely different problems — don't confuse the two.
Level vs. decreasing coverage
Level coverage stays flat for the whole term. Decreasing coverage steps down over time to roughly track your shrinking balance. Level is often the more flexible choice — the extra benefit can help with taxes, upkeep, or lost income beyond just the loan.
Underwriting
Because it's typically term life, underwriting works the same way — a health questionnaire and sometimes a paramedical exam. No-exam options exist up to certain coverage limits; whether the policy is issued still depends on your answers to the health questions on the application.
Two ways to size the coverage.
Mortgage protection is almost always term life — the choice is whether the benefit stays level or decreases alongside your loan.
General product descriptions; features, availability, and pricing vary by carrier and state. A licensed agent confirms what each carrier actually offers for your situation.
You're never required to buy the lender's optional mortgage protection policy.
When you close on a home, the lender — or a company they work with — may offer you mortgage protection. That offer is optional. It is not PMI: private mortgage insurance is a different product, and many conventional loans with less than 20% down do require it. You're free to shop your own coverage from any licensed agent, compare prices, and choose a policy you own, with your family as the beneficiary. Often a private term policy sized to your mortgage costs less and gives you more control. Our job is simply to show you the honest comparison so you can decide.
Compare your own coverage →Is mortgage protection the right fit?
It solves a specific worry well — here's the honest breakdown.
Usually a good fit
- You have a mortgage and want to make sure your family can stay in the home
- You want coverage tied to a clear, time-limited need — your loan payoff
- You want the simplest possible way to think about "how much" — your balance
Worth considering alternatives
- You may be better served by a single term life policy sized to your income and the mortgage together — often more coverage for the money
- You want permanent coverage or cash value — look at whole life or IUL
- You're mainly worried about funeral and final bills, not the mortgage — final expense may fit better
Mortgage protection — frequently asked questions
Is mortgage protection insurance the same as PMI?
No. Private mortgage insurance (PMI) protects the lender if you default and pays them, not you. Mortgage protection insurance is a life insurance policy that pays your beneficiaries if you pass away, so they can cover the mortgage and keep the home.
Does the payout have to go toward the mortgage?
No. Your beneficiary receives the death benefit directly and can use it however they choose — paying off the mortgage, keeping up with payments, or other needs. It is not paid to the lender.
Should I choose level or decreasing coverage?
Level coverage stays the same for the whole term; decreasing coverage drops over time to roughly track your shrinking loan balance. Level is generally more flexible because the extra benefit can help with taxes, upkeep, or income. A licensed agent can compare both for your situation.
Do I need a medical exam for mortgage protection insurance?
It depends on the carrier, your age, and the coverage amount. Many carriers offer no-exam options up to certain limits; larger amounts may require a paramedical exam.
Is it different from regular term life insurance?
Mortgage protection is usually a term life policy sized to your mortgage. The main difference is framing — it's structured around your loan. Many buyers simply use a standard term policy sized to their balance, which a licensed agent can help you compare.
Keep the roof over their heads.
A mortgage is most families' largest debt. Mortgage protection is simply life insurance sized to it — paid to your family, not the bank.
See what mortgage protection costs for your loan.
No obligation. A licensed agent sizes coverage to your mortgage and compares it against a plain term policy so you can see which option gives your family more protection for the money.