Mortgage Life Insurance Calculator
See how your mortgage balance falls over time and compare a mortgage protection quote with a level term policy for the same amount.
How this mortgage life insurance calculator works
Enter your mortgage balance, rate and years left. The calculator works out your monthly payment and the balance after 10 and 20 years, then compares the total premiums on a mortgage protection quote with a level term quote you enter.
Mortgage protection or level term
- Mortgage protection policies are usually tied to the loan, and the amount can shrink as the balance falls.
- Level term pays a fixed amount to the people you name, and they decide how to use it, including paying off the mortgage.
The last rows show the yearly cost per $1,000 of today balance, so you can compare the price of the two on equal terms. Always check what your own quote pays and who receives it.
Related tools
To see how much to cover beyond the mortgage, use our life insurance calculator. Compare term lengths with the term life insurance calculator, and see the payoff effect of extra payments with the mortgage payoff calculator.
For education only; not insurance or financial advice. Taxes, escrow and insurance are not included in the payment.
Frequently asked questions
Is mortgage life insurance worth it?
It depends on the price and what it pays. Compare it with a level term policy for the same amount, since term often pays your family directly and lets them choose how to use the money.
Does mortgage life insurance pay off the mortgage?
Many mortgage protection policies are designed to pay the lender, but terms differ. Check the policy wording and who the beneficiary is.
Does the payout decrease as I repay the loan?
On some policies it does. The balance rows show how fast the mortgage falls, so you can see how much cover you would still need.
How long should the term be?
Many people match the term to the years left on the mortgage. Use the years-left input to compare.
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