What is
Mortgage Life Insurance
Mortgage life insurance done right protects more than just a loan, it protects your loved ones and your legacy.
Unlike mortgage insurance from a bank, which typically pays the lender directly, individually-owned policies are designed to put you and your beneficiaries first. In other words, you control the benefit, not the lender. Therefore, your family can choose how to use the funds, whether to pay off the mortgage or handle other urgent needs.
Plus, the coverage remains intact even if you refinance or switch lenders, and your payout stays consistent, unlike bank insurance, which often decreases as the mortgage balance drops.
What it Covers?
The mortgage life insurance provides a tax-free payout if death occurs during the insured period. This payout is paid directly to your beneficiaries, not the bank, and can be used for:
Common uses include:
Paying off the remaining mortgage balance
Covering property taxes or home maintenance
Managing household expenses during the transition
Choosing whether to keep or sell the property on your family’s terms
How Much Coverage Do You Need?
We typically recommend coverage equal to your full mortgage balance, or slightly more, aligned with your amortization period or beyond.