Mortgage Protection
Mortgage Protection Insurance
What is Mortgage Protection Insurance?
Mortgage protection insurance is a type of term life insurance that is designed to pay off your mortgage in the event of your death. It works much like a standard term life policy: you purchase coverage for a set period, make monthly payments, and if you pass away while the policy is in force, your chosen beneficiary receives funds to pay off your mortgage.
This coverage gives your family the security of knowing they can stay in their home even if you are no longer able to contribute to mortgage payments. Mortgage protection insurance helps ensure your loved ones aren’t forced to move or face financial hardship—providing lasting stability and peace of mind.
How Mortgage Protection Insurance Works
Mortgage protection insurance functions much like other life insurance policies: You pay premiums to the insurance company to purchase a specific amount of mortgage protection coverage. Your premiums are determined by factors such as your age, health, the value of your home, and the outstanding mortgage balance. If you pass away while the policy is active, the insurance company provides funds to pay off your mortgage in full.
Mortgage Protection Insurance FAQ
A: Mortgage protection insurance is a type of term life insurance designed to pay off your mortgage if you pass away during the policy term, ensuring your family can remain in their home.
A: While both provide financial protection for your loved ones, mortgage protection insurance is specifically designed to pay off your outstanding home loan, so your family is not burdened with mortgage payments if you pass away.
A: Typically, your beneficiary (often your spouse or family member) receives the funds, which are then used to pay off your mortgage. In some policies, the lender may be the direct beneficiary.
A: Your premiums are determined by your age, health, the value of your home, the remaining mortgage balance, and the length of the policy term.
A: Many providers offer mortgage protection insurance with simplified underwriting or no medical exam, making it accessible even if you have some health concerns.
A: If you have a mortgage and want to ensure your family can stay in their home no matter what, mortgage protection insurance can be a smart, affordable safeguard. Our advisors can help you evaluate your needs and options.
Advantages of Mortgage Protection Insurance
- Provides a death benefit to pay off your mortgage in the event of your death
- Pays your mortgage payments if you become disabled
- Protects your mortgage payments in the event of critical illness
- Provides benefits from a life insurance policy with generally affordable premiums
- Achieves peace of mind for your home and family
| Mortgage Protection | Term Life Insurance | PMI | |
|---|---|---|---|
| Purpose | Pays off mortgage if you die | Pays a lump sum to beneficiaries | Protects lender if you default |
| Beneficiary | Your family (or lender) | Your chosen beneficiary | Lender |
| When it pays out | If you die during the policy | If you die during the policy | If you default on mortgage |
Who Should Consider Mortgage Protection Insurance?
- You are a homeowner with an active mortgage
- You want to ensure your family can stay in their home, no matter what happens
- You prefer simple, affordable life insurance coverage tied directly to your mortgage
- You want peace of mind that your largest asset is protected
- You may not qualify for traditional life insurance—or want added protection just for your home
How to Apply for Mortgage Protection Insurance
- Request your free quote: Fill out our quick online form or contact our team.
- Review your options: We’ll walk you through the best policies for your needs and budget.
- Apply easily: Complete your application—many policies require no medical exam!
- Get covered: Enjoy the peace of mind of knowing your home and family are protected.