Mortgage Protection Life Insurance — done right.
Closed on a house? You probably got 'mortgage protection insurance' offers in the mail. Most are overpriced. A standard term policy does the same job better — and costs less.
If you've recently closed on a home, you've probably received a stack of mailers — many designed to look like they came from your lender — pitching 'mortgage protection insurance.' Most are decreasing-term policies marketed at premium rates compared to standard term. The product itself is fine; the pricing usually isn't.
What you actually need is straightforward: a level term life insurance policy sized to cover your mortgage balance plus a few years of family expenses, with a term length that matches your loan's amortization. We'll set this up in 15 minutes.
Key points for your situation.
Match the term length to the loan
30-year mortgage = 30-year term. 15-year mortgage = 15- or 20-year term. The coverage retires alongside the loan.
Level term beats decreasing term
Decreasing term policies (the 'mortgage protection' kind) reduce coverage as the loan pays down. Level term keeps coverage flat — and the premium difference is often tiny.
Cover both income earners
Joint mortgage = joint risk. Cover both spouses, not just the primary earner.
Add a buffer beyond the mortgage
$50K–$100K above the loan balance handles closing costs, transition expenses, and a few months of mortgage payments while the family adjusts.
The bank's 'mortgage protection' isn't required
Some lenders pitch their own coverage at closing or through follow-up mailers. You're never required to buy it — and rarely should.
Lock in while you're closing-window healthy
If you've recently been through the closing process, you've probably also been through a recent physical. Apply now while your latest labs are favorable.
Top questions on this scenario.
Should I buy the mortgage protection policy my lender offered?
Almost always no. The product exists; the pricing is rarely competitive with a standard term policy. We'll quote both side-by-side.
What's the difference between mortgage life insurance and life insurance?
Mortgage life insurance pays the lender; standard life insurance pays your family. Either can fund the mortgage, but standard term gives the family flexibility — pay off the mortgage or invest the difference.
Do I really need to insure my spouse for the mortgage too?
If both incomes were used to qualify, yes. The lender expects both to repay; cover both.
How much above the mortgage should I cover?
$50K–$100K is typical buffer. For larger families or higher-cost areas, $200K above the loan balance can be appropriate.
What if I'm refinancing?
If your refi adds years to the loan, you may want to extend coverage. Layering a new shorter term on top of existing coverage is often the cheapest fix.
Start with the free Will Kit. No pressure, no obligation.
We'll mail your kit, then schedule a 15-minute review whenever you're ready.