How Much Mortgage Protection Coverage Do You Need?

Determining the right amount of mortgage protection coverage is one of the most important decisions you'll make when purchasing a policy. Too little coverage leaves your family vulnerable; too much means you're paying for protection you don't need.

Start With Your Mortgage Balance

The simplest approach is to match your coverage to your current mortgage balance. If you owe $350,000, a $350,000 policy ensures your mortgage can be fully paid off. However, this is just the starting point—you may want more or less depending on your situation.

Consider Decreasing vs. Level Coverage

Decreasing Term: Coverage decreases as your mortgage balance decreases. This can be more affordable, but you'll have less coverage over time.

Level Term: Coverage stays constant throughout the policy term. Even as you pay down your mortgage, the full benefit is available—giving your family extra funds for other expenses.

Factor In Other Debts and Expenses

Your family's needs go beyond just the mortgage. Consider adding coverage for:

• Outstanding debts (car loans, credit cards, student loans)

• Future college expenses for children

• Funeral and final expenses

• Living expenses for a transition period

Account for Dual Incomes

If both spouses contribute to mortgage payments, consider coverage for both. Losing either income could make the mortgage unaffordable. Many couples choose to insure each spouse for the full mortgage amount.

Use Our Coverage Calculator

Not sure how much coverage you need? Our free calculator takes your mortgage details, debts, and family situation into account to recommend the right coverage amount. It only takes a minute and gives you a personalized recommendation.

The Golden Rule

When in doubt, slightly over-insure rather than under-insure. The peace of mind of knowing your family is fully protected is worth a few extra dollars per month. Your family's security is priceless.