Question 1

Is mortgage protection insurance the same as PMI?

Accepted Answer

No. PMI (private mortgage insurance) is required by some lenders when you put less than 20% down, and it protects the lender if you stop paying — it pays nothing to your family. Mortgage protection is life insurance you own. If you pass away during the covered period, the payout goes to the beneficiary you name, not to the bank.

Question 2

Does the money go to my mortgage company?

Accepted Answer

Not unless your family decides it should. The death benefit is paid to the beneficiary you name — usually a spouse or another family member. They can use it to pay off the loan, keep making the monthly payments, or cover something else entirely. The choice stays with them.

Question 3

What kind of policy is this?

Accepted Answer

In most cases it's a term life insurance policy sized to your mortgage. You choose a coverage amount near your loan balance and a term length near the years you have left on the loan. Some shoppers choose permanent coverage instead — a licensed agent can walk you through the difference.

Question 4

Does my coverage shrink as I pay down the loan?

Accepted Answer

It depends on the policy. Level term keeps the same death benefit for the whole term even as the balance drops, so the extra goes to your family. Decreasing term follows the loan balance down and usually costs less. Both are common; which fits depends on what you want left over.

Question 5

Do I need a medical exam?

Accepted Answer

Not always. Depending on your age, health, and the coverage amount, no-exam options may be available. A licensed agent can tell you whether you qualify.

Question 6

I already have life insurance through work. Isn't that enough?

Accepted Answer

It may not be. Employer coverage is often one to two times your salary, which is rarely enough to clear a mortgage, and it usually ends when the job does. Many homeowners carry a separate policy so the house is covered regardless of where they work.

Question 7

What does this cost?

Accepted Answer

Rates depend on your age, health, the coverage amount, the term length, and your state — so there is no single price. Comparing several carriers is the practical way to see your range, and a licensed agent does that with you at no cost.

Keep the house in the family.

We are not your mortgage lender

How We Help You Compare Mortgage Protection

How much should the coverage be?

A policy you own, not one the bank holds

Your family gets the money

Level premiums

The policy is yours, not the loan's

Private, secure, and no obligation

Frequently Asked Questions

See What It Takes to Cover Your Mortgage