Beginner’s Guide to Mortgage Protection Insurance

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In this Article

If you’re a homeowner, chances are you probably have homeowner’s insurance to cover any accidents that happen on your property or damage due to water or flooding. While homeowner’s insurance is usually required when purchasing a home, this insurance plan only protects the home itself, rather than the people living there.

That’s where mortgage protection insurance comes in. Mortgage protection insurance is a life insurance policy that will step in and cover your mortgage payments if you are unable to pay the bills due to a disability, critical illness diagnosis or death.

What is mortgage protection insurance?

Mortgage protection is an affordable type of  term life insurance that is designed specifically for homeowners. A mortgage protection plan typically provides coverage for the same number of years – or “term” – as your mortgage. The amount of mortgage life insurance coverage you need will depend on your income, your dependents and your spouse’s life insurance coverage (if any). 

How does mortgage protection insurance work?
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Apply for Coverage

Mortgage protection insurance starts with an application for coverage. With Quility, you can apply 100% online or with the help of a licensed agent.

Quility’s proprietary technology provides a seamless shopping experience and gets you from quote to coverage in less than 10 minutes

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Make Payments

Once your policy is in force with an insurance company, you make payments – also known as “premiums” – to maintain coverage. If you pass away during the term, your beneficiary will receive funds to pay off your mortgage (and other expenses, depending on how much coverage you purchase).

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Update Your Insurance Coverage

It is crucial to update your insurance coverage to reflect any new mortgage value in order for your family to remain protected. If your mortgage protection term has ended, it’s time to re-visit your insurance needs.

Mortgage protection insurance protects your loved ones

Mortgage protection insurance is designed to cover your mortgage payments, so most people select a policy term that is close to the number of years they will have outstanding mortgage payments.

Once your application for insurance is approved by the insurance company, you will pay a monthly or annual premium. As long as your premiums are paid on time, your policy remains in-force (active). If you pass away during this time, the insurance company will cover the remainder of your mortgage payments so your loved ones can stay in the family home.

Is mortgage protection insurance affordable?

For most people, a mortgage protection policy is one of the most affordable types of insurance on the market. Your premium is based on the amount of coverage you need (the amount of your mortgage), as well as your health, age, and tobacco use. Many insurance companies offer simplified underwriting, meaning you won’t need to visit a doctor for a medical exam in order to qualify.

With Quility, mortgage protection rates start as low as $20/month and provide up to $1M in coverage. Apply online and get a policy in your inbox in 10 minutes or less!

Mortgage protection insurance cost estimate persona
What does mortgage protection insurance cover?

If you pass away during the time your policy is in-force, the insurance company will cover the remainder of your mortgage payments until your home is paid off. This can provide a huge relief to your loved ones, as your family will be able to stay in their home and not have to worry about keeping up with the bills. You can also purchase riders for your policy, which would offer additional coverage in the even that you become critically ill or disabled and cannot work.

Is mortgage protection worth it?

For many people, this type of insurance is a better fit than a standard term or permanent life insurance policy due to its affordability. If you are a homeowner, mortgage protection is the simple solution to ensure your loved ones can stay in the family home if something happened to you.

Even if you have life insurance coverage through work, mortgage protection insurance can supplement this coverage by supporting your family during a potential hardship, providing mortgage payments while your employer-sponsored life insurance could cover other bills or expenses related to your passing.

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Get a free quote and apply online in 10 minutes or less.

Apply online for mortgage protection insurance
If you are looking for affordable and reliable life insurance coverage to protect your loved ones, a mortgage protection policy could be the perfect fit. If you’d like more information on which term length fits your budget and goals, Quility’s licensed insurance agents are just a click away.

Protect Your Loved Ones Today

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

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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.