---
title: Mortgage Protection Insurance: Keep the House Paid
url: https://coverfolk.com/coverage/mortgage-protection
updated: 2026-10-08
---

# Mortgage protection insurance

If something happens to you, the money goes to your family so they can keep the house.

[How much do I need?](/calculator)

Updated October 8, 20265 sources[Fact checked](/editorial-standards)

The short answer

Mortgage protection is life insurance meant to pay off your home if you die. It is often a decreasing term policy where the payout drops as your loan goes down.

## Who it fits

Homeowners who want their family to keep the house.

Who buys it
:   Homeowners

Medical exam
:   SometimesDepends on age, amount and company

Coverage amounts
:   In New York, mortgage credit life is capped at $220,000. A regular term policy can be sized to your loan.

## What to know before you buy

**It is not PMI**

PMI protects the lender, not you. It does not keep your family in the home.

**Often decreasing term**

The payout shrinks over time while the price stays the same.

**Lender plans pay the bank**

Credit life through a lender pays the loan balance, not your family.

**Term can do the same job**

A regular term policy can be set to last while you have a mortgage, and the money goes to your family.

**Lender plan caps**

In New York, credit life for a mortgage is capped at $220,000.

## Common questions

Is mortgage protection the same as PMI?

No. PMI protects the lender if you stop paying. It does not protect you or your family.

Can a term policy work instead?

Yes. You can buy term to last while you have a mortgage. Your family gets the money and decides how to use it.

Who gets the money?

With credit life from a lender, the loan is paid off. With your own term policy, your beneficiary gets the money.

## Mortgage protection by state

[Arizona](/states/arizona/mortgage-protection)[California](/states/california/mortgage-protection)[Florida](/states/florida/mortgage-protection)[Georgia](/states/georgia/mortgage-protection)[Illinois](/states/illinois/mortgage-protection)[Michigan](/states/michigan/mortgage-protection)[New Jersey](/states/new-jersey/mortgage-protection)[New York](/states/new-york/mortgage-protection)[North Carolina](/states/north-carolina/mortgage-protection)[Ohio](/states/ohio/mortgage-protection)[Pennsylvania](/states/pennsylvania/mortgage-protection)[Tennessee](/states/tennessee/mortgage-protection)[Texas](/states/texas/mortgage-protection)

## Learn more

[**Is mortgage protection insurance the same as PMI?**](/answers/mortgage-protection-vs-pmi)[**How much life insurance do I need?**](/answers/how-much-life-insurance-do-i-need)[**What is the difference between level term and decreasing term?**](/answers/level-vs-decreasing-term)

## Sources

1. [CFPB: What is private mortgage insurance?](https://www.consumerfinance.gov/ask-cfpb/what-is-private-mortgage-insurance-en-122/)
2. [New York DFS: Types of Life Insurance Policies](https://www.dfs.ny.gov/consumers/life_insurance/types_of_policies)
3. [Texas Department of Insurance: Do you need life insurance?](https://www.tdi.texas.gov/tips/life-insurance.html)
4. [Texas Department of Insurance: Life insurance guide](https://www.tdi.texas.gov/pubs/consumer/cb018.html)
5. [Illinois Department of Insurance: Buying Life Insurance](https://idoi.illinois.gov/consumers/consumerinsurance/lifeannuities/buying-life-insurance.html)

Other coverage

## Compare with the others

[Ages 50 to 85

### Final expense

Small whole life plans that pay for a funeral and last bills.

See final expense](/coverage/final-expense)[Ages 18 to 65

### Term life

The most coverage for the least money, for 10 to 30 years.

See term life](/coverage/term-life)[Any age

### Whole life

Coverage that lasts your whole life and builds cash value.

See whole life](/coverage/whole-life)