Becoming a homeowner is exciting, but it can also make you worry about your mortgage payments. You might be wondering what will happen if you suddenly can’t work anymore. That’s when mortgage insurance companies come into play.
These organizations offer a specific insurance policy – term life insurance, that can match the length of your mortgage. This insurance serves to help your beneficiaries pay your remaining debts if you become catastrophically ill or pass.
Today, you’ll get to read about some mortgage insurance agencies and learn how to select the best one for you and your family.
Best Mortgage Protection Insurance Sites
USAA
USAA offers its insurance services to US military personnel, their families, as well as veterans. It’s one of the top-rated carriers with various insurance options that you can purchase online. In addition, USAA offers whole, term, and universal life insurance that you can use for mortgage protection.
Key Features
- Level term
- Essential term
- Universal life accumulator
- Simplified whole life
State Farm
State Farm is among the best mortgage insurance companies in the US. This company has top consumer ratings and offers to return your premium if you don’t end up needing your policy. However, it has limited term lengths.
Key Features
- Whole life
- Term life
- Universal life
- Online quoting
Nationwide
Nationwide is one of the best insurers if you’re looking for shorter, 15-year mortgage protection. This company offers affordable and reliable term-to-permanent conversion, as well as whole life insurance policies.
Key Features
- Term
- Whole
- Universal
- Variable
Protective
Protective is among the best mortgage protection insurance agencies for reverse mortgages. In addition, this insurer makes it easy for older applicants to get the term insurance they need. Terminal illness and accelerated death benefits come at no additional cost.
Key Features
- Term life
- Permanent life
- Whole life
- Universal life
Haven Life
This life insurance company is an ideal choice if you need life insurance that will also cover your remaining mortgage payments. Haven Life has an easy online policy buying process without the need for a medical exam for some policies. You’ll also enjoy other features without additional cost.
Key Features
- Haven Term
- Haven Simple
- Term coverage from $5,000 to $3 million
- Accelerated death benefit
List of the Most Awesome Mortgage Insurance Companies in USA – Reviews 2022
USAA
Essential Features
- Level term V
- Essential term
- Universal life accumulator
- Simplified whole life
Additional Features
- Guaranteed whole life
- Free assistance for survivors
- Protection for disability
- Flexible premiums
Overview
USAA offers ideal life insurance solutions for veterans, military employees, and their families. USAA is also a top-rated insurer where retiring veterans can replace SGLI and lock in premiums. This insurer offers multiple riders to choose from and is worth considering as one of the best mortgage insurance companies.
Pricing Plans
The basic factors that affect the cost of life insurance policy from USAA are your lifestyle and overall health – good blood pressure, cholesterol, etc. General health guidelines for premiums include:
- No or limited tobacco use
- No family history of cancer
- No alcohol or substance abuse in the last five years
The average cost for a 20-year long policy with $500,000 coverage for a healthy man in his 20s is $19.57. The same parameters for a 60-year-old increase the monthly premium cost to $222.90.
Term Life Insurance Features
If you decide to get a mortgage protection plan and life insurance from USAA, the best way to go is with a term life insurance policy. These are its features:
Level Term V is best for budget-friendly coverage. Available for anyone aged 18 to 70, and the monthly premiums start at $12. A medical exam is required, and coverage ranges from $100,000 to $10 million.
Essential Term insurance is great for young adults who need easy coverage. It’s available to people aged 21 to 35, and payments start at $15/month. Coverage is fixed at $100,000 until the policy expires.
Customer Support
If you have any questions about life insurance for a mortgage, you can call USAA on the numbers stated in the Contact Us section. Regarding customer support reviews, the overall rating is low, but life insurance is rarely mentioned in the customer reviews as customers are more likely to complain about homeowners policies.
Our Verdict
Even though USAA is limited to military employees, veterans, and their families, it’s definitely worth considering as a mortgage insurance agency. Purchasing a mortgage protection life insurance with USAA should set you up for a safe future and can help your beneficiaries cover your mortgage if anything happens to you.
State Farm
Essential Features
- Whole life
- Term life
- Universal life
- Online quoting too
Additional Features
- Cash value accumulation
- Death benefits
- Convertible premiums
- Triangle of Protection
Overview
State Farm is among the top mortgage insurance companies, especially for 30-year term life policies. State Farm life insurance is available in all states except Massachusetts, New York, and Wisconsin. You’ll also have to work with an agent and pass a medical exam.
Pricing Plans
You can obtain a quote for your life insurance via State Farm’s online quoting tool. You can select between 10, 20, or 30 years of coverage with term life insurance. These are the estimates of the cost of mortgage life insurance:
- 10-year plan, $250,000 coverage, starts at $15.02 per month
- 20-year plan, $250,000 coverage, starts at $15.22 per month
- 30-year plan, $250,000 coverage, starts at $19.14 per month
These prices are based on a 25-year-old female with great health, located in Illinois, so your prices may vary.
Term Life Insurance Features
When it comes to State Farm, the company offers something called The Triangle of Protection. This offer includes life insurance, disability home insurance, and homeowners insurance.
The Triangle of Protection is an ideal solution to keep your beneficiaries ,and your mortgage paid even if you become extremely disabled or pass. To find out more about this mortgage life insurance protection, you should reach out to an agent or use an online calculator to get an estimated price.
Customer Support
To get in touch with State Farm, visit the Contact Us section and look for the phone number of the department you need. You can also log in and manage your account from the website. When it comes to customer reviews, not many people complain about their life insurance policies.
Our Verdict
If you’re looking for a trustworthy mortgage life and disability insurance policy, State Farm is the right company to consider. With its Triangle of Protection, you can get more coverage than with other insurance companies. However, you’d still have to purchase your policy via an agent.
Nationwide
Essential Features
- Term
- Whole
- Universal
- Variable
Additional Features
- Online application
- Convert to permanent coverage
- Online quoting tool
- Nationwide CareMatters
Overview
Nationwide can act as a great provider of mortgage protection insurance for seniors. What’s more, policyholders have the option of converting coverage to permanent life insurance at any time before their term life insurance expires.
Pricing Plans
The cost of life insurance policies that help cover your mortgage is actually lower than you might think. Still, the final cost depends on the amount of coverage, the length of your policy, and your health and age.
According to some examples, a healthy, 35-year-old male with a coverage of $250,000 and excellent health could pay about $15.75 per month for his term life policy. Being among the best mortgage protection insurance company sites, Nationwide lets you schedule a call or use an online quoting tool to get a price estimate.
Term Life Insurance Features
Term life insurance advantages include:
- Financial protection for your family
- More affordable than whole life
- Younger policyholders pay less
- Policy conversion from term to whole, universal, or variable
What’s more, the income benefits are tax-free, and there are many riders to choose from for additional life and mortgage protection insurance benefits, for example:
- Chronic illness rider
- Terminal illness rider
- Children’s term insurance
- Premium waiver rider, etc
Customer Support
The latest customers’ reviews don’t mention how people were serviced for their life insurance policies. If you have issues, you can contact Nationwide via the phone numbers listed on the Contact us section.
Our Verdict
Nationwide is a good company to purchase a mortgage life insurance policy from. It’s a well-established company with great features of term life insurance that can cover your mortgage.
Plus, you can convert your term policy into other options before it expires. The prices are affordable, but you might have to pass a medical exam, depending on which policy you’re purchasing.
Protective
Essential Features
- Term life
- Permanent life
- Whole life
- Universal life
Additional Features
- Variable life
- Affordable term insurance
- Premium riders
- Cash value
Overview
Protective is a great company that offers mortgage insurance in case of death. Protective offers several types of life insurance policies and the option to convert term insurance to any of the permanent life insurance options.
Pricing Plans
According to some estimates, Protective offers the most affordable pricing plans in the industry. For example, a 62-year old woman with $300,000 coverage for 15 years would pay only $91 per month, which is about 50% less than with other insurers.
Still, know that multiple factors determine your final cost, such as your age, physical health, the length of coverage, and your location.
Also, know that your mortgage life insurance cost can increase once your initial policy expires, so make sure to plan your next move.
Term Life Insurance Features
Term life insurance from Protective comes with the following features:
- Term periods from 10 to 40 years
- Coverage amounts from $100,000 to $50 million
- Options to convert to permanent policies
- Guaranteed level premiums
- Terminal illness rider
- Affordable policies
- Coverage for the specified time frame
- Easy to manage
Term life insurance can be used as an income replacement to cover a child’s education, divorce settlement, or student loans. Additionally, it can help your loved ones pay out your mortgage if you pass or become severely disabled and unable to work.
Customer Support
Protective is among the best mortgage protection insurance providers, but if you have issues with your policy, you can contact the company via the Contact Us page on the website. According to some estimates, Protective is below the industry average for customer service. However, we couldn’t find any recent complaints.
Our Verdict
Even though Protective is not the first on the list of companies to buy life insurance to pay off the mortgage, it certainly provides enough features in its term life policy to keep you and your beneficiaries covered. The best thing about Protective is that the policies are affordable, even for older applicants.
Haven Life
Essential Features
- Haven Term
- Haven Simple
- Term coverage from $5,000 to $3 million
- Accelerated death benefit
Additional Features
- 100% online buying process
- Up to $ million without medical exam
- Tax-free lump sum
- Paperless processing
Overview
Even though Haven Life is among the newest agencies, it’s still on the list of the best mortgage protection insurance companies. Haven offers the easiest fully-online application and requires a medical exam for only specific term life policies. However, you can only get term life insurance with this company.
Pricing Plans
As always, the cost of your insurance premium will depend on your location, age, coverage, and the length of the insurance. The good news is that you won’t have to pass a medical exam if you’re looking to purchase Haven Simple policy.
According to some examples, a 33-year old woman from Virginia could purchase a mortgage life insurance with no medical questions with $500,000 coverage for 20 years for only $17.50 per month.
Term Life Insurance Features
Haven Life offers two term policies – Haven Term and Haven Simple. The essential features of Haven Term policy are:
- Coverage up to $3 million
- Required medical exam
- Haven Life Plus rider with $400/year worth of benefits
Term Simple policy has the following features:
- Coverage up to $500,000
- No medical exam required
Note that the availability for these two policies differs, where only Haven Term is available nationwide. Mortgage life insurance age limit for Haven Term is up to 64 and for Haven Simple 20 to 55.
Customer Support
Haven Life is among the best insurers with the highest customer rating overall. Most customers are happy with the easy application process and the service. If you have any questions, you can reach out to Haven Life via the ticket system.
Our Verdict
If you’re looking for an easy application process for the best mortgage life insurance, Haven Life should be your go-to. Everything is done online, and that’s exactly what makes this insurer stand out.
In addition, some policies may not require a medical exam, but you’ll still enjoy great coverage. Keep in mind that some policies are available nationwide while others have limited accessibility. Still, Haven Life customer support is among the best-rated teams in the industry and can help you select the right policy for you.
How to Select the Best Mortgage Life Insurance?
When selecting the mortgage insurance policy, you’re basically choosing term life insurance. This is why you should primarily focus on the companies that provide great service in this industry.
Term Life Insurance Features
Most term life policies last for a limited time, are highly affordable, and serve to keep your beneficiaries protected if you pass or become so disabled you can’t provide income. However, policies differ, and some offer additional riders that can improve the lives of your loved ones in the future.
Eligibility for Term Life Insurance Policy
Some companies offer mortgage life insurance protection program to all types of clients. However, others limit their service to veterans or government employees. Additionally, many require that you pass a medical exam and will base their prices on your current health status. Sometimes you may not be eligible based on your family health history as well.
Throw a Glance at Their Customer Support
Since your life insurance company will be responsible for your family and beneficiaries, you should take a look at how it treats existing customers. Explore the most recent customer reviews, and don’t be shy of contacting the support yourself to see how they treat you.
Consider the Price Range
Mortgage payment protection insurance is among the most affordable insurance policies you could purchase. Some start as low as $15 per month, even if the coverage is about $500,000. However, the final cost is based on your overall health, location, family history, etc. Still, you’re likely to find affordable policies in today’s market.
Summary
If you’re looking into securing your mortgage payments, you’ll likely purchase the best mortgage protection insurance out there. However, know that there’s no specific insurance policy that will cover only your mortgage. Instead, you’ll be looking into term life insurance.
With this life insurance, you and your family will be protected even if you become disabled and you can’t work anymore. Term life insurance lasts for a certain time period, and it’s best to match it with the duration of your mortgage.
People Also Ask
What is mortgage protection insurance?
Buying a home is a huge financial commitment, especially if you’re getting a loan to purchase your property. Often, you might even be committing yourself to 30 years of payment. However, that’s a lot of time, and many unfortunate unplanned things could happen to you.
This is where mortgage protection insurance comes into play. This insurance can cover your family and pay your mortgage in case you’re unable to work or have passed before the mortgage is fully paid off. This policy is similar to term life insurance.
How much does mortgage life insurance cost?
The cost of your mortgage life insurance policy depends on several factors. However, since it’s similar to term life insurance, where the insurance company covers any remaining debts, you could take term life insurance prices as examples.
Overall, mortgage protection life insurance policies are affordable, and since you’ll be purchasing it for a longer time, your monthly premiums could easily be about $150 or lower, depending on your health status, location, and desired death benefit.
What type of life insurance is best suited to cover a mortgage?
Mortgage protection policies pay your loved ones if you become very ill or pass, and some life insurance policies can cover your mortgage as well. There are two main life insurances – term and whole. Whole life insurance lasts for your entire life.
On the other hand, term life insurance lasts for a specific time period and protects you for a certain amount of years. Additionally, term life insurance comes as level and decreasing, where a decreasing plan is best suited for mortgage repayment.
Is mortgage protection legit?
If you already have any type of insurance policy, you might be wondering whether mortgage protection is legit or a scam. What’s more, you might receive mortgage protection offers in your mailbox that could look legit.
Overall, mortgage insurance policies are a legit way of making sure that people you leave behind have no problems with paying your mortgage. Still, there are some catches to pay attention to. For example, disability riders aren’t that strong, and you’d have to be significantly disabled to qualify for benefits.
What is the most trusted insurance company?
The most trusted insurance company in the US is State Farm. This insurance company offers an array of insurance, banking, and investment products to keep you fully protected and financially safe.
While State Farm doesn’t directly provide mortgage insurance, it offers something called a Triangle of Protection, where you can purchase life, disability income, and homeowners insurance policies to keep your family and home secured in the future.
How long do you have to have mortgage protection insurance?
Mortgage or term life insurance should provide your beneficiaries with the option to pay off your mortgage or remaining debts after you die. However, as the policy owner, you get to choose how long you’ll pay for your insurance policy.
The best thing to do is to match the length of your insurance with the length of mortgage payments. That’s how you’ll be certain your mortgage will be paid in full, and your beneficiaries will remain safe.
What insurance covers your mortgage in case of death?
If you buy your home and are fearful about your future, you could also purchase mortgage insurance to insure your mortgage is paid. Mortgage insurance covers your loved ones in case of your death or if you become so disabled that you can’t work.
Besides mortgage insurance, your term life insurance could also cover your mortgage payments. You could match your coverage amount and policy length to your mortgage or extend your policy to cover more expenses. Consult some of the mortgage insurance companies on how to do this.
