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Life insurance is an important financial product that can protect your family if something were to happen to you. One of the biggest considerations when buying life insurance—and calculating how much coverage you need—is your mortgage.
Mortgage insurance is a term policy that provides declining coverage as your mortgage value declines over time. While mortgage protection insurance products were available not that long ago, they have been steadily phased out by carriers because most people don’t stay in the same home for 30 years, or they refinance at some point in time. These days, it makes more sense to instead purchase term life insurance that can protect your family in your absence to include paying off the mortgage balance on your home.
Here are our top picks for the best term life mortgage protection insurance companies, taking into account factors such as product availability, consumer satisfaction, pricing, and features.
Best Mortgage Protection Insurance Companies of 2023
- Best Overall: State Farm
- Best for Young Families: Banner Life
- Best for Veterans: USAA
- Best for 15-Year Mortgages: Nationwide
- Best for Reverse Mortgages: Protective
- Our Top Picks
- State Farm
- Banner Life
- See More (2)
Best Overall : State Farm
- Cost: About $35/month
- Availability: All states except Massachusetts, New York, and Wisconsin
- Online Quotes: Yes
Our choice for best overall mortgage protection life insurance carrier is State Farm, which offers to return your decades’ worth of premiums if you don’t wind up needing your policy.
Top consumer ratings
Return of premium offered
Online quotes available
Must buy through agent
Not available in all states
Limited term lengths
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.
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.
You’ll need to work with an agent in order to buy your policy; medical exams are required for most applicants. 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.
J.D. Power ranked State Farm the number one life insurance carrier in its 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.
Read our full State Farm Life Insurance review.
Best for Young Families : Banner Life
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.
Term policies last as long as 40 years
Available in almost every state
Up to $10 million in coverage offered
Supplemental terms up to 20 years
Preferred underwriting available even with medical or tobacco history
Must buy coverage through an agent
Annual policy fee added
Banner Life 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. 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.
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.
Read our full Banner Life Insurance review.
Best for Veterans : USAA
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.
Term, whole, and universal life coverage
Retiring veterans can replace SGLI and lock in premiums
Many terms and riders to choose from
Available in all 50 states
Add or convert coverage as needed
Medical exam is required
Only available to eligible service members and their families
This military-based USAA 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.
Best for 15-Year Mortgages : Nationwide
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.
Term, whole, universal, and variable life coverage
Convert to permanent coverage at any time without medical exam
Online quotes available
Need to buy through advisor
Quotes online are limited
Nationwide 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 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.
Best for Reverse Mortgages : Protective
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.
Apply online for up to 20-year term coverage if you’re 65 and under
Terminal illness and accelerated death benefits at no cost
Convertible to permanent coverage
Additional benefits and riders
Affordable even for older applicants
Must finalize with agent
Medical exam required
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 really can limit the options and pricing available to you.
Protective offers coverage 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.
Compare the Best Mortgage Protection Insurance
|About $35/month||All states except Massachusetts, New York, and Wisconsin||Yes|
Best for Young Families
|About $30/month||All states except New York||Yes|
Best for Veterans
Best for 15-Year Mortgages
Best for Reverse Mortgages
If the goal is to protect your mortgage, it's difficult to go wrong with a policy that offers to return the premiums you paid if you never need your policy. State Farm is our pick for best overall because it provides just this. It's a win-win situation. If you need the policy, you have it, but if you pay off your mortgage having never used the policy, you get the benefit of years worth of premiums returned.
Actual mortgage protection insurance is rare, so if looking for term life to provide equivalent coverage, State Farm has the reputation and the insurance offerings to be a good option for most homeowners.
Frequently Asked Questions
What Is the Average Cost for Mortgage Protection Insurance?
Numerous variables can into how much coverage will cost, but we found that for between $300,000 and $500,000 in term coverage for 30 years, a healthy woman in her early 30s could expect to pay somewhere between $16 and $35 a month.
Is Mortgage Insurance Important?
It depends on your personal situation. If you have a term life policy, for example, that likely would provide enough coverage for your family to pay the mortgage if something happened to you. So, in that case, mortgage insurance might be unnecessary.
Can a Senior Citizen Get Mortgage Protection Insurance?
It’s nearly impossible for anyone, regardless of age, to find mortgage protection insurance today, at least as a standalone policy. Some life insurance carriers may offer mortgage protection as an optional rider on life insurance policies, but these are very rare.
In building this list of mortgage protection insurance options, we looked at 13 of the best term life insurance companies. Like your mortgage, term policies last for a specific period of time and are a more affordable option than permanent policies, so term is our suggested coverage option for mortgage peace of mind.
To choose our top picks, we considered factors such as availability, product features, and both included and optional benefits. We compared pricing, as well as evaluated consumer satisfaction and third-party industry ratings to determine which carriers can offer you the most trusted, affordable, and feature-rich coverage available.
JD Power. "2021 U.S. Life Insurance Study."
AM Best. “AM Best Affirms Credit Ratings of State Farm Mutual Automobile Insurance Company and Most of Its Subsidiaries.”
AM Best. “AM Best Affirms Credit Ratings of Legal & General Group Pic and Its Subsidiaries.”
AM Best. “AM Best Affirms Credit Ratings of United Services Automobile Association, Its Subsidiaries and USAA Capital Corporation.”
AM Best “Nationwide Group.”
U.S. Department of Housing and Development. "How the HECM Program Works."