Mortgage life insurance is a type of insurance that pays off your mortgage in the event of your death.
It can provide valuable protection for homeowners who have existing medical conditions.
In this article, we discuss mortgage life insurance, how to get it if you have medical conditions, and if it's right for you.
What is mortgage life insurance?

Mortgage life insurance, also known as mortgage protection insurance, is a type of life insurance that pays off your mortgage payments if you pass away. Mortgage protection insurance is different from term life insurance, which only pays a death benefit if you die during the policy term. Mortgage life insurance also differs from whole life insurance, which has both a death benefit and a cash value account that grows over time.
How does Mortgage life insurance work?
Mortgage life insurance policies typically last for 15 or 30 years, and pay out a death benefit upon the policyholder's death can be set up in one of three ways:
- Decreasing Coverage
The death benefit may be fixed for the first few years of the policy's coverage, but it may gradually diminish at a set rate in subsequent years. The goal here is to follow the mortgage amortization process.
- Mortgage Principal
The death benefit of some insurance is based on the remaining mortgage principle. It will function similarly to a declining death benefit, but will adjust accordingly if you pay off your mortgage sooner or later than intended.
- Level
The death benefit is level, meaning it won't change during the policy's term. If you have an interest-only mortgage, this could be a good option because you won't have to worry about changing the principal.
Mortgage life insurance is different from mortgage default insurance. Mortgage default insurance is required if your down payment is less than 20% and you want to buy a home. In the event that you become unable to pay your mortgage, your mortgage lender will be safeguarded by this provision.
Should you consider getting mortgage life insurance
Here are a few things to consider when deciding if mortgage life insurance is right for you.
Most insurance companies will not need a medical exam for mortgage life insurance, so if you have pre-existing medical conditions, you will have an easier time getting accepted.
First, ask yourself if you need life insurance at all. If you have young children or other dependents who rely on your income, then you'll want to make sure they're taken care of financially if you're no longer around. If you're single with no dependents, then you may not need life insurance.
Next, think about whether mortgage life insurance is the best type of life insurance for you. If you only need coverage for the length of your mortgage, then mortgage life insurance may be a good fit. However, if you need coverage for a longer period, such as 20 or 30 years, then term life insurance may be a better option. Term life insurance policies will usually be more expensive than mortgage life insurance policies, but they can provide peace of mind knowing that your family will be taken care of financially no matter when you pass away.
Finally, consider your budget. Mortgage life insurance policies are generally more expensive compared to other types of life insurance, but they still require premiums that must be paid every month. Make sure you can afford the monthly premium before buying a policy.
Your bank or mortgage lender may provide this insurance for you, but you can also buy it from a different insurance company if you choose.
Other mortgage-related insurance policies
Mortgage-related insurance policies can help protect borrowers in the event of unemployment, disability, or death.
- Mortgage disability insurance covers the entire mortgage balance or just a percentage of it if the borrower becomes disabled.
- Mortgage unemployment insurance helps cover mortgage payments if the borrower is unemployed for a period of time.
- Private mortgage insurance (PMI) protects the lender in case the borrower defaults on the loan, but borrowers can cancel coverage once their loan-to-value reaches 80%.
How to get mortgage life insurance if you have medical issues

If you have medical issues, you may worry that you won't be able to get mortgage life insurance. However, there are a few things you can do to increase your chances of getting coverage.
First, make sure to shop around and compare rates from different companies. Mortgage life insurance rates can vary significantly from one provider to another, so it's important to get quotes from several different companies before deciding on a policy.
Second, consider a term life insurance policy instead of a mortgage life insurance policy. A term life policy will only cover you for a set period—usually 10–20 years—but it can help your family more than just the mortgage debt.
Finally, keep in mind that a lot of mortgage life insurance policies may not even care about pre-existing medical conditions. By doing your research and shopping around, you should be able to find a mortgage life insurance policy that meets your needs.
The benefits of getting mortgage life insurance if you have medical issues
- Generally No-Medical Exams: One of the main reasons to get mortgage life insurance is that you won't have to go through a medical exam. If you have pre-existing medical conditions, this can be a huge benefit because it means you're more likely to be accepted for insurance coverage.
- Coverage Amount: Mortgage life insurance benefits typically cover the entire mortgage balance.
- Affordable: Mortgage life insurance policies can be very affordable. This is another big benefit if you're on a tight budget.
Conclusion
Getting mortgage life insurance when you have medical issues can provide peace of mind in the event of an untimely death.
Mortgage life insurance covers your loved ones can avoid the added burden of having to deal with foreclosure.
If you have any questions about mortgage life insurance or need help finding an insurance policy that meets your needs, contact us today. We're here to help!