Do I Really Need Mortgage Protection Insurance?

The short answerYou need some way to protect the house if your family couldn't make the payment without your income. That could be a mortgage protection policy, a larger term policy that already includes the mortgage, or enough savings. If your existing coverage already handles it, you may not need a separate policy.

Ask yourself three questions

Could my family keep paying the mortgage without my income for the next several years?
Does my current life insurance (including work coverage) cover the balance and other needs?
Do we have savings we'd be comfortable using?

If the honest answer to the first is no and the others don't fill the gap, protection is worth looking at.

A hypothetical example

Example numbers only

Hypothetical household. Example numbers only.

Mortgage balance	$450,000
Monthly payment	$3,200
Existing work coverage	$80,000
Example gap to pay off the home	$370,000

Hypothetical example for education only. It is not a quote or a recommendation for your situation.

Mortgage protection or regular term?

They're often the same thing: term life sized to your mortgage. A broader policy can also cover income and kids' needs. You don't need a lot of money to protect your tomorrow, today.

How much would cover your mortgage?

Our free mortgage coverage calculator uses your balance and payment to estimate the coverage to look at.

Use the mortgage calculator

Related free tools

Family needs analysisAdd up debt, income, mortgage and education to get your own coverage number.FAST calculatorSee where money leaks each month and what you could redirect toward protecting your family.See what you may qualify forAnswer a few health questions and see which options are likely to fit.

Common follow-up questions

What if both spouses work?

Look at whether either income alone could carry the mortgage. Often both people need coverage.

Should coverage match my balance or my payment?

Either can work. Some cover the whole balance; others cover a number of years of payments.

Does coverage go down as my loan goes down?

Many policies keep a level benefit, which can leave extra for your family. Decreasing-benefit options also exist.

Can I get mortgage protection with health issues?

Often yes. Options and price depend on underwriting.

Keep learning

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Do I really need mortgage protection insurance?