:fill(white):max_bytes(150000):strip_icc()/State_Farm-1f53d2e3a9694f718c67c96568dfa9ec.jpg)
Stephanie is an expert on insurance and small business.
Updated May 26, 2024 Fact checked by Fact checked by Michael LoganMichael Logan is an experienced writer, producer, and editorial leader. As a journalist, he has extensively covered business and tech news in the U.S. and Asia. He has produced multimedia content that has garnered billions of views worldwide.
Based on our research, State Farm offers the best mortgage protection insurance because it returns premiums if you don't need your policy, offers online quotes, and is highly rated by consumers.
Mortgage insurance is a term policy that provides declining coverage as your mortgage value declines over time. While mortgage protection insurance products were available not that long ago, they have been steadily phased out by carriers because most people don’t stay in the same home for 30 years, or they refinance at some point in time. Instead, it makes more sense to purchase term life insurance that can protect your family in your absence to include paying off the mortgage balance on your home.
To select our top picks, we researched 13 insurance companies across a series of categories that are important to borrowers, including availability, product features and benefits, and third-party ratings from reputable companies such as J.D. Power and A.M. Best.
Our choice for best overall mortgage protection life insurance carrier is State Farm, which offers to return your decades’ worth of premiums if you don’t wind up needing your policy.
Pros & ConsNever needing to actually use your life insurance coverage is obviously a good problem to have. If you’ve paid premiums for decades just to have your term policy expire, though, it would still be nice to get a little of that money back in the end.
In addition to whole and universal life coverage, State Farm offers 20- and 30-year term coverage with a cash-back guarantee. The return of premium feature means that you can get back all of the money you paid into your policy if, at the end of your term, you have made scheduled payments on time and not needed to use any of your coverage or benefits.
You’ll need to work with an agent in order to buy your policy; medical exams are required for most applicants. A 33-year-old healthy woman can buy $500,000 in 30-year term coverage from State Farm for around $35 a month, according to the online quote generator. This doesn’t include any optional coverage such as a disability waiver of premium, child or spouse protection, or a select term rider.
J.D. Power ranked State Farm the number one life insurance carrier in its 2021 U.S. Life Insurance Study, which takes into account factors such as consumer satisfaction and customer service. State Farm also holds an A++ (Superior) financial strength rating from AM Best.
:fill(white):max_bytes(150000):strip_icc()/Banner_life-15f59a7b11a14474a2588912378d922d.jpg)
For young families—with financial concerns that include new home loans, small kids, and even future babies—term coverage through Banner Life can provide up to 40 years of reliable mortgage protection, earning our nod for this category.
Pros & ConsBanner Life offers as much as $10 million in life insurance coverage for up to a 40-year term, with the option to add a supplemental 20-year term that can further protect your family until the kids are grown or the house is paid off. This allows you to account for both shorter- and longer-term financial concerns with one policy.
Banner Life provides both term and universal life policies, but no whole life coverage. Term-to-permanent conversion is offered, as are riders like waiver of premium, accelerated death benefit, and coverage for children. Applicants can qualify for preferred underwriting even with a history of tobacco use, certain medical issues, or a family history of cancer. You can get term quotes online but will need to work with an agent to actually buy your policy. We found that a healthy 33-year-old woman in Virginia could protect her family’s mortgage with $500,000 in 30-year term coverage for just over $27 a month. Also, be sure to note that a $90 annual policy fee will be added to your cost.
This carrier is backed by Legal & General, which has 185+ years of experience and holds an A+ (Superior) rating from AM Best. Policies are available in 49 states and the District of Columbia. In New York, term life policies are available through its sister company, William Penn Life Insurance.
:fill(white):max_bytes(150000):strip_icc()/USAA-c949e4135523429eb58e89bfbec4fdcd.jpg)
Eligible military veterans and their families can purchase life insurance from USAA, a top-rated carrier that offers a wide variety of coverage options and protections that can be purchased online.
Pros & ConsThis military-based USAA has been providing a range of financial services and products since 1922—including banking, loans, and credit cards—but also offers top-rated life insurance coverage for short- and long-term needs. In order to buy life insurance from USAA, you’ll need to become a member. The carrier offers term, whole, and universal life policies, all of which provide benefits when deploying or retiring from service (such as locking in premiums to replace SGLI benefits).
Term policies are 10, 15, 20, 25, and 30 years in length and can be converted to permanent coverage later on. Riders include coverage for your children and severe injuries during military service.
You also can add more coverage after certain life events, such as having a baby, getting married, or buying a home. This means that if you move and purchase a more expensive home, you can ramp up your life insurance coverage to protect that larger mortgage. Online quotes are available, either online or through the company’s mobile app. We were quoted $31 a month for a $500,000, 30-year term policy on a healthy 33-year-old woman. In order to buy a policy, though, you’ll need to become a member and complete a medical exam.
USAA holds an A++ (Superior) rating from AM Best, which is the highest possible financial strength rating.
:fill(white):max_bytes(150000):strip_icc()/Nationwide-ec048defe5dd4a04ab2064b55201ddd9.jpg)
We picked Nationwide as our favorite carrier for protecting your 15-year mortgage as they offer affordable and reliable protection with term-to-permanent conversion at any time during your policy.
Pros & ConsNationwide policyholders have the ability to convert their coverage to permanent life insurance protection at any time before their term expires (through age 65). This means you can buy a lower-cost policy that protects your mortgage, especially if you have a shorter loan term like 15 years. After that period, you can opt to convert your life insurance into a permanent policy that suits your family’s new needs, or you can keep your term coverage until it expires. In many cases, an additional medical exam is not needed to convert.
Online quotes are offered; however, even though temporary coverage is available in 10-, 15-, 20-, and 30-year terms, you can only get pricing for 10, 20, or 30 years (not 15). Also, you’ll need to work with an advisor to actually purchase your policy. Medical exams may be required for some applicants. A healthy 33-year-old woman can buy $500,000 in term life coverage for 15 years at a rate of about $16 a month through Nationwide. Optional riders include an accelerated death benefit, waiver of premium, and of course, the ability to convert term coverage at any time before your term ends (maximum age of 65).
Nationwide has been providing insurance coverage for more than 90 years and operates across the country. The company holds an A+ financial strength rating from AM Best and ranked second in J.D. Power’s 2021 U.S. Life Insurance Study.
