What is Mortgage Life Insurance?

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Your home is likely your biggest investment, and the odds are that you still owe quite a bit of money for it. But what will happen to your home and your family if you were to die suddenly? Would your family be able to make the payments, or would they be forced to move? If you answered the latter, you need life insurance for your mortgage.

Mortgage life insurance covers the outstanding mortgage principal amount, less any that is in arrears and any debit balance remaining in your tax account. The insurance will also pay out if you have a terminal illness and are expected to live one year or less. The insurance money can help alleviate any financial concerns, so you can focus on spending time with your family in your final days.

Mortgage life insurance coverage begins on the day your mortgage is approved. That way, you have protection from the moment you take possession of the home. If your mortgage is for more than $500,000, you can still get partial mortgage life insurance.


Like any other type of life insurance, mortgage life insurance often depends on the age of the insured when they apply for the insurance. The premiums won’t increase after you purchase the insurance, so it’s beneficial to buy it as young as possible.

You can get a quote on mortgage life insurance for an idea of what your rates may be. Your quote will be based on your age, your health and any other factors the insurance company deems important.



You can have your mortgage life insurance payments included in your regular mortgage payment. That way you won’t have to pay a separate bill and you won’t have to think about your coverages. The payments will be due whenever your mortgage payment is due, so you can pay monthly, bi-weekly or in some other increment agreed upon by you and your lender.

You can apply for coverage online. Most insurers let you fill out a simple form in order to qualify and purchase coverages. You can also visit the bank that services your loan, or call and ask for a recommended insurer.

If you’re a homeowner with a mortgage, you should look into mortgage life insurance. The peace of mind that will come from knowing your family is protected in the event of your death is worth the expense of purchasing a policy. Look into what options are available to you and choose the plan that best suits your current needs and financial situation.