Mortgage insurance vs. life insurance

A side-by-side comparison of lender mortgage insurance and term life insurance for protecting your home.

Your mortgage details

$50,000$2,000,000
5 yrs30 yrs

Indicative monthly cost comparison

Lender mortgage insurance

~$188/mo

Coverage shrinks; benefit goes to lender

Term life insurance

~$33–$63/mo

Level coverage; benefit goes to family

Indicative only. Life insurance rates depend on age, health, and smoking status. Get an actual quote from Jatinder.

Cost estimates are indicative ranges based on typical market rates for a 35–45 year old non-smoker in good health. Actual premiums depend on your age, health, smoking status, and the specific insurer. This is not a quote or financial advice.

FeatureLender mortgage insuranceTerm life insurance
Who is covered?The bank's loan
Your familyBetter
Coverage amountDecreases as you pay off
Fixed (level benefit)Better
BeneficiaryThe lender
You chooseBetter
Premium over timeStays same as coverage shrinks
Level premiumBetter
Portable if you move?No — tied to lender
Yes — follows youBetter
Medical underwritingPost-claim (can deny)
Pre-approval at sign-upBetter
Payout goes toLender only
Family (use as needed)Better
If you sell the homeCoverage ends
Policy continuesBetter

Why term life insurance wins for mortgage protection

Lender mortgage insurance is underwritten after a claim, meaning your family could be denied at the worst possible moment. Term life insurance is fully underwritten upfront, and the payout goes directly to your family so they can pay off the mortgage, cover living expenses, and make their own decisions.

Get a term life insurance quote

Jatinder will compare quotes from multiple insurers and find the right coverage for your family.

Book a Free Consultation

Or learn about mortgage protection