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Mortgage Protection Life Insurance

A home is one of the biggest financial commitments you can make. Mortgage protection life insurance helps you keep it in the family, even after you’re gone.

What Is Mortgage Protection Life Insurance?

Life insurance offers financial protection to your family by providing a cash payout if you were to pass away. In many cases, that money would go directly to your family to help them cover day-to-day expenses, pay leftover debts, or manage end-of-life costs.

Mortgage protection insurance (MPI) is similar to life insurance, with one major difference: Your mortgage company or lender receives the payout instead of your family. The lender then uses that payout to cover the balance of the mortgage on your home.

Mortgage death insurance can help you realize your dream of owning a home and protect your family from debt if the worst happens. Some lenders require this type of insurance so they have a fallback if you die while you’re still paying off your mortgage.

How Does Mortgage Protection Life Insurance Work?

Also called mortgage death insurance, this type of insurance works in a similar way to decreasing term life insurance. The coverage amount and length typically match the terms of your mortgage, with term lengths ranging up to 30 years.

As you make mortgage payments, your death benefit gradually decreases over time. For example, if you start with a $150,000 mortgage with a 20-year term, your mortgage protection insurance payout might decrease by 5% a year until it is gone at the end of the term. If you die during that time, any payout would go directly to the bank to cover the rest of your mortgage.

In some cases, the term length may be limited by your age. When you’re shopping for a life insurance quote, be sure to ask a professional about your options.

Pros and Cons of Mortgage Protection Life Insurance


  • Secures your mortgage by providing protection that your bank may require
  • Simple approval with limited underwriting, in many cases
  • Protects your family from debt by ensuring the bank gets paid if you die


  • Lack of flexibility, since the payout goes to your bank instead of your family
  • Often more expensive than other term life insurance policies because of limited underwriting
  • Doesn’t cover your family’s financial needs beyond your mortgage

You’ve Got Mortgage Life Insurance Questions. We’ve GotAnswers.

Life Insurance Quotes Through eFinancial

We’re committed to helping individuals, couples, and families protect themselves and their loved ones financially. With eFinancial, you’ll have access to high-quality, affordable life insurance options from more than 20 leading insurance providers. Our team of licensed agents will guide you through the process so you can get covered as quickly as possible.

To learn more, start your free, no-obligation online quote or call 866-388-3996800-957-9525 to talk with one of our agents.