5 Tips for Buying Mortgage Protection Insurance

dad and two kids playing in yard, protected with mortgage insurance

In this Article

For many of us, our home is our most valuable investment and our largest monthly expense. Protecting your home with mortgage life insurance is a smart way to safeguard your financial future and protect your loved ones, but for many of us, shopping for the best policy for our needs can be confusing. One great option for homeowners is mortgage protection insurance, which is a term life policy that covers the cost of your mortgage in the event you were unable to pay the bills due to unexpected circumstances such as a critical illness diagnosis, disability, or death.

Determine how much coverage you need

Mortgage protection insurance covers your mortgage payments in the event of death or disability. Having this insurance keeps your family in their home if you were no longer around to make payments on the mortgage. The first step in finding the right coverage is determining how long you will be paying off your mortgage.  

To determine how much mortgage protection insurance coverage you need, you should:  

  • Estimate how long you plan to make mortgage payments on your home 
  • Find out if your spouse has life insurance coverage through his/her job, and how much 
  • Calculate your annual salary and any other income from freelancing, side businesses, etc.
  • Determine how long you may support any dependents  

The most important thing to consider is the cost of your mortgage and who would be left to cover that cost if something happened to you. From here, you can determine a term length and coverage amount that ensures your loved ones are financially covered if you were no longer around.

Calculate how long you need insurance coverage

Mortgage protection insurance is a form of term life insurance, so your policy’s term length can range from ten to 30 years. In general, your mortgage protection policy should last for the entire span of time you’ll be making mortgage payments. You’ll have the option to customize the length of your policy to match your budget and needs.

Add policy riders for additional protection

Many insurance companies offer riders that you can add on to your policy to enhance your coverage and protect against other life events such as an unexpected critical illness diagnosis or an injury that leads to disability. A critical illness rider would add coverage to protect your income in the event you were diagnosed with an illness covered in the policy, and a disability rider would be similar with financial support provided in the event you couldn’t make an income due to disability.

One popular add-on option is the return of premium rider, which can provide a full refund of the premiums you paid into your policy if your term ends and you didn’t use the insurance. This can give you peace of mind in knowing that you’re covered, but you can also get a refund if you don’t end up needing the coverage. 

Lock in a low rate

Your monthly premium payment for mortgage protection insurance is based on the value of your home and the payoff amount, as well as your health and your age at the time you apply for coverage. Getting this insurance while you’re young and healthy can help you secure an affordable monthly payment.

Most insurance companies offer mortgage protection insurance without the requirement for a medical exam, so getting insured is usually a straightforward process.

Shop online or connect with a Quility agent

If you are looking for affordable, reliable life insurance to protect your loved ones, mortgage protection insurance is the perfect fit. With policy types to fit every need, the perfect option is only a click away. If you’d like a personalized mortgage protection policy with competitive rates, Quility’s licensed agents are just a click away. We’re here to help you find the best insurance plan for your life.

Apply for mortgage protection insurance online through our ten-minute application, or chat with a Quility insurance agent to get started.

Let’s Get Started

If you are ready to get coverage now, our online application takes less than ten minutes.

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Calie Brummer
Head of Digital Communications
Calie Brummer is a staff writer and Head of Digital Communications at Quility Insurance with a focus on financial well-being and life insurance solutions.