Learn About Buying Mortgage Life Insurance
After you purchase your home you may receive offers from several life insurance companies offering you mortgage insurance.
Unlike private mortgage insurance (PMI) which is required for loans with low down payments and which protect lenders from default, mortgage life insurance is designed to pay off your mortgage loan if you die.
If you own a home or you are buying a new home you may be in the market for mortgage insurance to protect your home loan and your family.
However, a term life insurance policy can be a better value for you and your family because it offers the same protection at lower rates.
And, you can leave the death benefit to your beneficiary (spouse, children, family members, etc.) to use the money as they see fit – which may include to pay off the outstanding balance owed on your home mortgage loan.
Mortgage life insurance benefits usually decrease over time but with level premiums; whereas, term life insurance has death benefits that remain level until your policy expires, with level premiums.
A term life insurance policy can provide you with more coverage at a lower price, and your family will receive the death benefit, not the mortgage lender.
So, you get more protection and the flexibility of choosing who receives the benefits.
Here’s how to compare term life insurance quotes to protect your mortgage. Comparing rates online will help you quickly and easily find the most affordable plan.
How Much is Mortgage Life Insurance Per Month?
The "premium" or price you pay for mortgage coverage each month will depend on the type of policy, duration of coverage, amount of insurance, your age, gender, health and other risk factors; as well as, the insurance company.
Some plans may only cost $15 to $20 per month. Using term life insurance to protect your mortgage may save you quite a bit, and get you affordable protection to fit almost any budget.
Benefits of Life Insurance on Your Mortgage
Options for Purchasing Mortgage Insurance
What is Home Mortgage Insurance?
It’s financial protection that guarantees the money will be available to pay off the outstanding loan on your home should you die while the insurance coverage is "In Force".
Why Get Mortgage Insurance?
Mortgage protection provides peace of mind to the insured person, financial security for the mortgage company, and it helps to keep your family in their home.
How Does Mortgage Life Insurance Work?
You select a life insurance policy in the amount of your mortgage loan, with a duration (term) that matches the duration of your mortgage loan.
You agree to pay the insurance company "premiums" on a regular basis (usually monthly) and in return, the insurance company agrees to pay the death benefit to the beneficiary of your insurance policy upon your death.
Is a Medical Exam Required?
Usually, there is not a medical exam required when you apply for mortgage protection through your bank or mortgage lender.
However, the price you pay may be higher than if you were to purchase mortgage insurance on your own through an insurance agent or broker, or direct online.
How Long Does It Take to Get Insurance?
It depends on which option you choose for buying your policy. If you go through an agent or the mortgage company, it may take several weeks.
However, if you buy direct online, you may be able to start your insurance policy within 48 hours, or less.
How Long Do You Need Coverage?
When selecting your policy make sure you choose a "term" (duration of coverage) that matches the length of time you have your home loan – 10, 15, 20 or 30 years.
So, if you have a 20-year mortgage loan, you’ll want a 20-year life insurance policy.
How Much Insurance Do You Need?
When purchasing your mortgage policy make sure you match the amount of coverage to your outstanding balance on your mortgage loan.
So, if you have a mortgage loan of $256,000 – you’ll want to get a policy that provides $256,000 of life insurance coverage.
What is the Quickest and Easiest Way to Get Mortgage Life Insurance?
The quickest and easiest way to get coverage is to buy a simplified issue level term life insurance policy with no exam required, just some health questions asked.
If you are healthy, you may qualify to buy up to $1,000,000 of coverage and start your policy today.
Get a Free Quote for Instant Coverage from an insurance carrier rated "A++" (Superior) for financial strength by AM Best.
How to Find the Most Affordable Mortgage Protection Insurance?
The easiest way to find the best price on your plan is to comparison shop for affordable mortgage life insurance rates online from several of the leading insurance carriers.
That way, you can objectively compare pricing from multiple insurers without an agent pressuring you to buy from one insurer that may offer him or her a higher commission.
Can I Get Mortgage Life Insurance If I Have Cancer?
It depends on your age, health, prognosis, when you were diagnosed, your treatment, and several other key risk factors.
However, there are some insurance companies that do offer term life plans for people living with cancer. You can compare these plans and pricing from several insurers by requesting a free quote through JRC Insurance Group.
Mortgage Life Insurance Quotes
Top Pick – JRC Insurance Group
JRC Insurance Group helps you shop, compare and save on life insurance. Regardless of your age or health background, we'll shop our 40+ insurance companies and find you affordable life insurance you need to protect your family and fit your budget. Compare the best life insurance rates for savings up to 73%. Get Your FREE Quote
Highly Recommended – Haven Life
Haven Life uses the information provided in your application to make an instant decision on your application. Healthy, qualified applicants (based on the information provided in your life insurance application) can be insured immediately with no medical exam while other applicants can receive immediate coverage pending a medical exam.