Mortgage Protection Insurance
Keep the Home, Even If You’re Gone
Your mortgage may be the biggest financial commitment your family relies on.
Mortgage protection insurance helps pay off the home loan if you pass away, become disabled, or are diagnosed with a critical illness (depending on the policy). It’s a practical way to help ensure
your loved ones can stay in the home you’ve built together.
This policy provides a tax-free benefit to cover remaining mortgage payments if you pass away.
It can also include protection for disability or job loss, depending on the plan.
Unlike traditional life insurance, it’s designed specifically to protect your home.
It’s often easier to qualify for & more affordable than other forms of life coverage.
Why Mortgage Protection Insurance Makes Sense
Mortgage protection insurance is a
specialized life insurance policy that pays your lender or beneficiary the amount owed on your mortgage if you pass away. Some plans also offer coverage if you become
critically ill or disabled, helping prevent foreclosure during tough times.
This policy is typically term-based, aligned with the length of your mortgage. Premiums are level and coverage amounts adjust to your remaining balance, ensuring it meets your home’s financial reality over time.
It’s a good fit for homeowners who want to
simplify protection for their family, especially if they don’t have other life insurance in place—or want added peace of mind specific to their home loan.
$236,000
The average U.S. mortgage balance is over $236,000
Source: Experian
50%
Nearly 50% of households would struggle to pay their mortgage within 3 months of a breadwinner’s passing
Source: LIMRA
15 to 30
Mortgage protection policies are available for terms from 15 to 30 years
Source: U.S. Insurance Market Report
Frequently Asked Questions
Your Questions About Mortgage Protection Insurance
Simple coverage, big peace of mind. Here's what homeowners want to know:
Who receives the benefit if I pass away?
In most cases, the benefit goes directly to your lender, paying off the mortgage in full. Some policies may offer the option to name a beneficiary—like a spouse—who can choose how to use the funds. Either way, it helps ensure your family stays in their home.
Is this the same as life insurance?
Not exactly. While it works similarly, mortgage protection is tied specifically to your home loan, and benefits are typically used to pay off that debt. It’s often easier to qualify for and is designed for a more focused purpose.
Do I need a medical exam?
Many policies offer simplified underwriting, which means no exam is required. Just answer a few basic health questions to qualify. This makes it a faster, more accessible option for many homeowners.
What if I pay off my mortgage early?
Some policies may allow you to convert to another form of coverage or end the policy with no penalty. It’s important to review the terms of your specific plan to see how it adapts if you pay off your loan ahead of schedule.
Is mortgage protection insurance worth it?
If your family would struggle to make mortgage payments without your income, it’s absolutely worth considering. This policy ensures your home is protected, even during life’s most difficult moments—and that your loved ones won’t face the added stress of losing their home.
