---
title: Mortgage Protection Insurance Calculator | Coverfolk
url: https://coverfolk.com/mortgage-protection-calculator
updated: 2026-10-08
---

# How much mortgage protection do I need?

Enough to pay off the house, plus a cushion while your family adjusts.

Suggested coverage

$320,000

Loan balance**$285,000**

Cushion (12 months)**$25,800**

Term to match**30 years**

Rounded up to the nearest $10,000. A level term policy keeps the same payout as your balance goes down. [Level vs decreasing term](/answers/level-vs-decreasing-term).

## How this mortgage protection calculator works

Start with what you still owe on the home loan. That is the money your family would need to own the house free and clear.

Then add a cushion. Months of payments give your family time to grieve, sell, or adjust without missing a payment. Taxes and homeowners insurance keep coming even after the loan is paid.

We round up to the nearest $10,000 and suggest a term that covers the years left on your loan. A level term policy keeps the same payout the whole time, even as your balance goes down.

## Common questions

Should the payout go to the bank?

Usually no. A regular policy pays your family, and they decide whether to pay off the loan. Credit life policies pay the lender instead.

Do I need this if I have a work policy?

Work coverage often ends when you leave the job. A policy you own stays with you.

What about a second mortgage or HELOC?

Add those balances to your loan balance so the total is covered.