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Mortgage protection is life insurance set up around your home loan: a coverage amount close to what you owe and a length that matches the years left. If you pass away during that time, the money goes to your family, not the bank.
As a family-owned independent agency, CBIS can show you options from many insurance companies, not just one lender’s plan. We’re based in Santee, serving San Diego County, and helping people across California by phone or video.
Already have a policy? We’ll review any life insurance policy you have, free, and tell you honestly if it still fits. Get a free policy review →
How Mortgage Protection Works
It’s regular life insurance, sized to your home loan.
Usually a term policy
The amount and length are chosen to fit your mortgage. Some homeowners use lifelong coverage instead, or add extra for other needs.
Your family gets the money
They can pay off the loan, keep making payments, or use it for other bills. It’s their choice, not the lender’s.
You own the policy
It isn’t tied to your loan, so it stays with you if you refinance, sell, or move.
Level or decreasing coverage
With level term, the amount paid stays the same for the whole term, even as your loan balance goes down, which can leave money for your family beyond the loan. With decreasing term, coverage shrinks as your balance drops, and it usually costs less.
Not PMI. Not Lender Insurance. Yours.
How mortgage protection is different from PMI and lender mortgage insurance: three things with similar names that work very differently.
PMI
- Private mortgage insurance protects your lender if you stop making loan payments.
- It’s often required when the down payment is small.
Good to know: it doesn’t pay anything to your family.
Lender mortgage life
- Often names the lender or loan servicer as the one who gets paid.
- The payout may go down as your loan balance goes down.
Good to know: it may not follow you if you refinance or move.
Mortgage protection
- Pays the people you choose.
- The coverage amount is set in the policy and can stay level for the whole term.
Good to know: it stays with you if you refinance, sell, or buy another home.
Mortgage protection is usually a term life insurance policy matched to your loan. If you’d rather have coverage that lasts for life, ask about whole life insurance.
Why Living Benefits Matter for Homeowners
Help with house payments while you recover
Some mortgage protection policies can include living benefits. If you’re diagnosed with a qualifying illness, you may be able to use part of your coverage early, which can help keep up with house payments while you focus on getting better.
- Critical illnessFor example, a heart attack or stroke that meets the policy’s definition
- Chronic illnessWhen a condition makes it hard to handle basic daily tasks on your own
- Terminal illnessWhen a doctor certifies a limited life expectancy
If a serious illness keeps you from working, the hardest part can be keeping up with the house payment. With some policies, you may be able to use part of your coverage early after a qualifying diagnosis, so your family can stay in the home while you recover. Any amount you use lowers what your family receives later, and availability and amounts vary by policy and state. Learn how living benefits work
Learn more about living benefits →
What Affects the Cost of Mortgage Protection?
Your price depends mostly on you and on the loan you want to cover:
- Your age and health
- Nicotine use, including vaping
- Your loan balance, which sets the coverage amount
- Years left on the loan, which sets the term length
- Whether you add living benefits or other add-ons
- Whether you’re covering one borrower or two
Two people on the loan? One choice is a joint policy: one policy that covers both of you but pays only once, usually when the first of you passes away. The other is two separate policies, one for each of you, so each one can pay out. Ask us to compare the cost and trade-offs.
Is Mortgage Protection a Good Fit for You?
It often makes sense when keeping the house would be hard on one income, or none. It may fit if:
- You just bought a home or refinanced
- One paycheck covers most of the mortgage
- You share the loan with someone who would struggle to pay it alone
- You want your family to have the choice to stay in the home
Not sure how much coverage your loan needs?
Bring your balance, rate, and years left. A licensed CBIS agent will size the coverage with you.
How to Get Mortgage Protection
No payment required to apply.
You pay nothing until you accept an offer.
- ApplyShare your loan details and answer a few questions with a licensed CBIS agent by phone or video call.
- The insurance company reviews your applicationThey review your health and history. Many policies use health questions only, and some need a short exam.
- Get your offerIf approved, you’ll see your price for the amount and length you chose.
- Make it fit your budgetAdjust the coverage amount or the number of years to match your loan and your budget.
- Accept, then payYour first payment comes only after you accept. Nothing is paid up front.
Want more detail on each step? See the full steps on our quote page.
Mortgage Protection Questions
Who gets the money from a mortgage protection policy?
The people you name, usually your spouse, partner, or family. The money doesn’t go to your lender. Your family can use it to pay off the mortgage, keep making payments, or cover other costs.
Is mortgage protection the same as PMI?
No. Private mortgage insurance (PMI) protects your lender if you stop paying your loan, and it doesn’t pay your family anything. Mortgage protection is a life insurance policy you own that pays the people you choose.
What happens to my policy if I refinance or sell my home?
Nothing changes. The policy belongs to you, not the loan, so it keeps going as long as you keep making your payments. If your new mortgage is bigger or longer, we can review whether your coverage still fits.
I got a mortgage protection letter in the mail after buying my home. Is it from my lender?
Usually not. Many new homeowners get mail about mortgage protection after closing. These letters usually come from insurance marketers, not your lender or the county. You don’t have to respond to any of them. CBIS works differently: we only contact you when you ask us to, and you talk with one licensed agent. If you’d like coverage, we can compare options for you.
Is mortgage protection insurance required?
No. Your lender may require homeowners insurance, and sometimes PMI, but life insurance to cover your mortgage is your choice. It’s worth a look if your family would struggle to keep up with the payments without you.
Does mortgage protection cover job loss or disability?
No. Mortgage protection is life insurance, so it doesn’t pay if you lose your job, and it doesn’t replace your income during a disability. If the policy includes living benefits, it may pay part of the coverage early for a qualifying serious illness. Disability insurance is a separate kind of coverage we can talk through with you.
Do I need a medical exam for mortgage protection?
Not always. Many policies decide based on your answers to health questions plus records the insurance company checks electronically, such as prescription history. Larger amounts or some health histories may need a short exam. We’ll tell you what to expect before you apply.
Let’s size coverage to your home loan.
CBIS has helped homeowners since 1982. Compare mortgage protection options with a licensed agent by phone or video call.
Other questions? Contact us.