Best Mortgage Protection Insurance Companies

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For young families—with financial concerns that include new home loans, small kids, and even future babies—term coverage through Banner Life can provide up to 40 years of reliable mortgage protection, earning our nod for this category.

The needs of younger families are different than those of older families which could include households that are still growing and new home purchases. Both of these can affect the level of mortgage protection you and your loved ones need.

For young families, Banner Life is our top pick for protecting not only your partner and children but also the mortgage on your family home for the duration of the loan even if you refinance or upgrade properties. The carrier offers as much as $10 million in life insurance coverage for up to a 40-year term, with the option to add a supplemental 20-year term that can further protect your family until the kids are grown or the house is paid off. This allows you to account for both shorter- and longer-term financial concerns with one policy.

Banner Life provides both term and universal life policies, but no whole life coverage. Term-to-permanent conversion is offered, as are riders like waiver of premium, accelerated death benefit, and coverage for children. Applicants can qualify for preferred underwriting even with a history of tobacco use, certain medical issues, or a family history of cancer. 

This carrier is backed by Legal & General, which has 180+ years of experience and holds an A+ (Superior) rating from AM Best. Policies are available in 49 states and the District of Columbia, though coverage is not offered in New York.

You can get term quotes online but will need to work with an agent to actually buy your policy. We found that a healthy 33-year-old woman in Virginia could protect her family’s mortgage with $500,000 in 30-year term coverage for just over $27 a month. Also, be sure to note that a $60 annual policy fee will be added to your cost. 

Read our full Banner Life Insurance review.

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Eligible military veterans and their families can purchase life insurance from USAA, a top-rated carrier that offers a wide variety of coverage options and protections that can be purchased online.

Whether you’re a current service member, military family, or veteran, USAA is the clear winner for life insurance coverage that can help protect your mortgage for your loved ones. This military-based company has been providing a range of financial services and products since 1922—including banking, loans, and credit cards—but also offers top-rated life insurance coverage for short- and long-term needs.

In order to buy life insurance from USAA, you’ll need to become a member. The carrier offers term, whole, and universal life policies, all of which provide benefits when deploying or retiring from service (such as locking in premiums to replace SGLI benefits).

Term policies are 10, 15, 20, 25, and 30 years in length and can be converted to permanent coverage later on. Riders include coverage for your children or spouse, severe injuries during military service, and accelerated death benefits.

You also can add more coverage after certain life events, such as having a baby, getting married, or buying a home. This means that if you move and purchase a more expensive home, you can ramp up your life insurance coverage to protect that larger mortgage.

Online quotes are available, either online or through the company’s mobile app. We were quoted $30 a month for a $500,000, 30-year term policy on a healthy 33-year-old woman. In order to buy a policy, though, you’ll need to become a member and complete a medical exam.

USAA holds an A++ (Superior) rating from AM Best, which is the highest possible financial strength rating.

Read our full USAA Life Insurance Review.

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Our favorite mortgage protection life insurance carrier for 30-year mortgages is State Farm, which offers to return your decades’ worth of premiums if you don’t wind up needing your policy.

Never needing to actually use your life insurance coverage is obviously a good problem to have. If you’ve paid premiums for decades just to have your term policy expire, though, it would still be nice to get a little of that money back in the end.

We chose State Farm as our top mortgage protection life insurance carrier for 30-year mortgages for this exact reason. In addition to whole and universal life coverage, State Farm offers 20- and 30-year term coverage with a cash-back guarantee. The return of premium feature means that you can get back all of the money you paid into your policy if, at the end of your term, you have made scheduled payments on time and not needed to use any of your coverage or benefits.

State Farm policies are available in all states except Massachusetts, New York and Wisconsin. While you can get an online quote for term coverage, you’ll need to work with an agent in order to buy your policy; medical exams are required for most applicants. 

J.D. Power ranked State Farm the number one life insurance carrier in their 2021 U.S. Life Insurance Study, which takes into account factors such as consumer satisfaction and customer service. State Farm also holds an A++ (Superior) financial strength rating from AM Best. 

A 33-year-old healthy woman can buy $500,000 in 30-year term coverage from State Farm for just under $35 a month, according to the online quote generator. This doesn’t include any optional coverage such as a disability waiver of premium, child or spouse protection, or a select term rider.

Read our full State Farm Life Insurance review.

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We picked Nationwide as our favorite carrier for protecting your 15-year mortgage as they offer affordable and reliable protection with term-to-permanent conversion at any time during your policy.

Whether you’re looking to buy term, whole life, universal life, or variable life insurance coverage, Nationwide has a product for you. We chose the carrier as our top pick for 15-year mortgage protection because of its term life policy options and features: Policyholders have the ability to convert their coverage to permanent life insurance protection at any time before their term expires (through age 65). 

This means that you can buy a lower-cost policy that protects your mortgage, especially if you have a shorter loan term like 15 years. After that period, you can opt to convert your life insurance into a permanent policy that suits your family’s new needs, or you can keep your term coverage until it expires. In many cases, an additional medical exam is not needed to convert.

Online quotes are offered; however, even though temporary coverage is available in 10-, 15-, 20-, and 30-year terms, you can only get pricing for 10, 20, or 30 years (not 15). Also, you’ll need to work with an advisor to actually purchase your policy. Medical exams may be required for some applicants. 

A healthy 33-year-old woman can buy $500,000 in term life coverage for 15 years at a rate of about $16 a month through Nationwide. Optional riders include an accelerated death benefit, waiver of premium, and of course, the ability to convert term coverage at any time before your term ends (maximum age of 65).

Nationwide has been providing insurance coverage for more than 90 years and operates across the country. The company holds an A+ financial strength rating from AM Best and ranked second in J.D. Power’s 2021 U.S. Life Insurance Study.

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Protective gets our top nod for the best mortgage protection insurance for reverse mortgages, because this carrier makes it easier for older applicants to buy the term protection they need at affordable rates and with helpful features.

In order to take out a reverse mortgage, homeowners need to be at least 62 years of age, among other requirements. This means that if you’re looking to buy life insurance as a mortgage protection tool, you’re probably an older applicant which can really limit the options and pricing available to you. 

Protective gets our top nod for the best term life insurance for reverse mortgages, not only because of their competitive rates but also due to the protection and features offered on their policies, even for older applicants. The company has been protecting families for more than 110 years and holds an A+ financial strength rating from AM Best.

Coverage is available from $100,000 all the way up to $50 million with terms ranging from 10 to 40 years in length. No matter how large your reverse mortgage is, you can build the right Protective life insurance policy to match. 

Applicants 65 and under can apply online for up to a 20-year term (62 or under if you’re a tobacco user). Though you can get a quote and apply online, just note that you’ll need to finalize the coverage with an agent over the phone. A medical exam will also be required to complete your purchase.

Term policies are convertible to permanent coverage without the need for a new medical exam. Protection like a terminal illness or accelerated death benefit is included at no additional cost. Optional protections include a child rider with up to $20,000 in coverage. 

Protective term life policies for older applicants are some of the most affordable we have found. A 62-year-old woman could buy $300,000 in 15-year coverage for only $91 a month, for instance, which is about half as much as we were quoted by some of the other carriers on this list.

Read our full Protective Life Insurance review.