Elizabeth Self, Life Insurance Broker

Can you get life insurance to cover your mortgage?

Answer: Yes, you can use life insurance to cover your mortgage. There are a few ways to do it:

Mortgage Protection Insurance (MPI)

This is a specialized policy designed specifically for mortgages. The death benefit decreases over time as your mortgage balance goes down, and the payout goes directly to the lender. It's simple but limited — your family gets no cash, just a paid-off mortgage.

Term Life Insurance

This is usually the better option for most people. You buy a term policy (e.g., 20 or 30 years) with a death benefit large enough to cover your mortgage balance. If you die, your beneficiaries receive the full payout and can choose to pay off the mortgage or use the money however they need. It's more flexible and often cheaper than MPI for the same coverage amount.

Permanent Life Insurance (Whole/Universal)

More expensive, but provides lifelong coverage. Some people use these policies if they want coverage beyond just the mortgage years, or for estate planning purposes.

Key things to consider:

Coverage amount — Make sure the death benefit is enough to cover your remaining mortgage, and ideally other expenses too (income replacement, debts, childcare, etc.)

Term length — Match the policy term to how long you have left on your mortgage

Cost — Term life is generally the most affordable; MPI tends to be more expensive relative to the benefit

Flexibility — Term life pays your family directly, giving them options; MPI only pays the lender

Health — Most policies require underwriting (a health review), so rates depend on your age and health

For most homeowners, a straightforward term life policy sized to cover the mortgage (and other needs) is the most cost-effective and flexible approach. It's worth comparing quotes and I am a health Insurance broker who will be happy to help you if you want life insurance. My services are free, Liz Self HealthMarkets Insurance. Contact me.