Life Insurance
Mortgage Life Insurance
Mortgage life insurance is designed to make sure your home can stay with your family if you pass away. There's more than one way to set it up — and the differences matter.
How it works
Lenders often offer mortgage insurance at signing. With that coverage, the lender is typically the beneficiary and the benefit usually shrinks as the mortgage is paid down.
An alternative is a personally owned term life policy sized to the mortgage. You own it, you choose the beneficiary, and the benefit stays level.
With personally owned coverage, your family decides how to use the money — pay off the mortgage, keep it and invest, or cover other costs.
Things to consider
Who's the beneficiary
Lender coverage pays the lender; personal coverage pays the people you choose.
Declining vs. level
Lender coverage usually decreases with your balance. Personal policies typically stay level.
Portability
Personal coverage stays with you if you switch lenders or move.
When it's reviewed
Some lender coverage is reviewed at claim time. Ask when health questions are assessed.
Frequently Asked Questions
Is lender mortgage insurance the same as life insurance?
Both pay on death, but lender coverage is usually tied to the loan and the lender. Personal life insurance is owned by you.
Can I replace my lender coverage?
Often, yes. Put the new coverage in place before cancelling the old one.
Other types of life insurance
Term Life Insurance
Coverage for a set period, usually at the lowest cost.
Whole Life Insurance
Lifelong coverage with fixed premiums and guaranteed cash value.
Participating Whole Life Insurance
Whole life coverage that may pay dividends.
Universal Life Insurance
Permanent coverage with flexible premiums and an investment component.
No-Medical & Guaranteed Issue Life Insurance
Simplified coverage without a medical exam.
Joint Life Insurance
One policy covering two people.
This page provides general educational information only and is not personal financial advice. Coverage availability and terms depend on the insurer and your individual circumstances.
Protecting Your Future Starts With Understanding What You Need.
Have a free, no-obligation conversation with a licensed advisor — get your questions answered before you decide anything.