If you’re a homeowner, protecting your biggest asset is a must.
Mortgage protection insurance ensures that your family isn’t left struggling to make payments if something unexpected happens.
But with so many insurance companies offering mortgage protection, how do you choose the best one?
Not all mortgage protection policies are created equal.
Some offer comprehensive living benefits, while others focus on affordability. Some have level premiums and benefits, while others increase in cost over time.
Let’s break down what you should look for and which company stands out as the best option.
1. Living Benefits: Why They Matter
Most people assume life insurance is just a payout when you pass away.
But with modern mortgage protection policies, you can access living benefits—allowing you to tap into your policy while you’re still alive.
Here’s what to look for:
- Critical, Chronic, and Terminal Illness Riders: These let you access a large percentage of your death benefit if you’re diagnosed with a serious illness.
- Varied Payout Percentages: Some companies offer up to 90% of your death benefit, while others cap it at 25-50%.
- Price vs. Coverage: While some policies may have a lower monthly premium, they often provide lower living benefit payouts. The key decision? Do you want the cheapest policy, or the one that provides the most financial security?
👉 Best Carrier for Maximum Living Benefits: National Life Group
2. Level Premium and Level Death Benefit: Avoid Rate Increases
Many homeowners don’t realize that some mortgage protection policies have rates that increase every five years or a death benefit that decreases over time.
This is a major issue because:
- Your monthly premium could become unaffordable when you need coverage the most.
- Your death benefit could shrink, leaving your family underinsured.
- The longer you wait to switch, the higher the new rate will be due to age and potential health changes.
How to Ensure You Have the Right Policy
- Choose a policy with level premiums (locked-in rates that never increase).
- Make sure the death benefit remains constant, no matter your mortgage balance.
- Avoid policies that seem cheap now but become expensive later.
👉 Best Carrier for Level Premium & Death Benefit: National Life Group
3. What Type of Mortgage Protection Do You Need?
Your ideal carrier depends on the specific features you want in a mortgage protection plan.
Cash Back Option (CBO) / Return of Premium (ROP)
Want to get 100% of your money back if you outlive the policy?
Then you need a CBO or Return of Premium policy. This type of coverage refunds every dollar of premium paid—giving you a built-in savings plan.
👉 Best Carriers for CBO Policies: American Amicable, Americo, Mutual of Omaha
Index Universal Life (IUL) for Mortgage Protection
Looking for a permanent solution that covers your mortgage and builds cash value tax-free?
An Index Universal Life (IUL) policy might be the best option. Not only does it provide mortgage protection, but it also acts as an emergency fund and wealth-building tool.
Benefits of an IUL:
- Grows cash value tax-free, which you can access anytime.
- Lifetime coverage—never expires like term insurance.
- Guaranteed legacy—ensures your family receives a payout no matter when you pass.
👉 Best Carriers for IUL Mortgage Protection: National Life Group, F&G
4. The Best Overall Mortgage Protection Provider
If your main priority is to get the most affordable term policy with living benefits that pays out the most, then National Life Group is our top recommended carrier.
Why National Life Group?
✅ Highest Living Benefit Payouts (up to 90%)
✅ Level Premiums & Level Death Benefit (never increases)
✅ Strong Carrier with Over 175 Years in Business
✅ Competitive Pricing Compared to Other Major Providers
✅ Covers Alzheimer’s & Critical Injury – Unlike many other carriers, National Life Group provides living benefits for Alzheimer’s disease and critical injury, ensuring you’re covered for a wider range of health issues that could impact your ability to pay your mortgage.
Final Thoughts: What’s the Best Mortgage Protection Plan for You?
The best mortgage protection plan depends on your specific goals:
- Want the highest living benefits payout? → National Life Group
- Looking for a Cash Back (CBO) Policy? → American Amicable, Americo, Mutual of Omaha
- Need a permanent IUL solution with cash value? → National Life Group, F&G
To see which option is best for you, fill out your details and have a licensed professional discuss your options.