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Best Mortgage Life Insurance Companies 2016-Top 10


Mortgage Life Insurance 2016

Mortgage life insurance pays off your remaining mortgage balance if you were to die prematurely.  The recipient of the insurance money is typically required to be the bank or the mortgage company.  For most people, especially those with younger families, it may be a better option for your loved ones to receive the insurance money directly and let them decide the best way to allocate the funds.  This is why term life insurance may be the better choice over mortgage life insurance since you can choose who will be the beneficiary.  There may be more important and immediate financial needs that need to be addressed instead of paying off the entire mortgage balance right away.

Often a better alternative to mortgage life insurance is term life insurance.  Term life insurance allows you to customize the policy and choose the beneficiary.  Also the premium will be locked in for designated period of time, most companies allow you to choose a 10, 15, 20 or 30 year term.  The great thing about term life insurance is that the rates are fixed for the full term and the insurance company cannot cancel or increase your premiums if anything changes with your health during the term.  Also, you can cancel the term life policy at any time without penalty but the insurance company is still obligated to fulfill the duties in the contract and cannot cancel as long as you pay your premiums. 

Another benefit of term life insurance is that the coverage is level throughout the term.  Say for example, you take out a $500,000 policy, in 15 years if one passes away the payout will still be the original amount of $500,000 compared to mortgage life insurance which matches the balance of the loan, which could be a lot lower say $300,000 or even a lot less depending on how much time is owed on the mortgage.  Mortgage life insurance is generally cheaper than term life insurance but for most people term life insurance is a more comprehensive way to better protect your loved ones.

Best companies for life mortgage protection for a healthy forty-year old male:


  1. Banner Life-Banner Life Insurance Company began in 1949 and is a subsidiary of Legal & General Group.  Banner is currently “A+” (Superior) rated for financial strength by A.M. Best.  This is the second highest rating available of 16, just behind A++ which is also (Superior).
  2. SBLIThe Savings Bank Life Insurance Company or (SBLI) was established in 1907. SBLI is “A+” (Superior) rated by A.M. Best.
  3. Protective Life Insurance Companywas established in 1907.  Protective has an “A+” (Superior) rating by A.M. Best.
  4. Genworth Financial– origins date back to 1871 when The Life Insurance Company of Virginia wrote their first policy.  Genworth Life Insurance Company is currently “A” (Excellent) rated by A.M. Best.
  5. Transamerica-Transamerica Life Insurance Company was founded in 1906.  Transamerica is “A+” (Superior) rated by A.M. Best
  6. American General Life (AIG)– American General Life Companies have been in business for over 160 years and have over 13 million customers.   American General is “A” (Excellent) rated for financial strength excellent by A.M. Best
  7. North American Company-North American was founded in 1886 as North American Accident Association.  Rated “A+” (Superior) rated by A.M. Best
  8. MetLife-Metropolitan Life Insurance Company or more commonly known as “MetLife” is one of the leading insurance companies in the county.  Metropolitan Life Insurance Company is “A+” (Superior) rated by A.M. Best
  9. ING ReliaStar-ReliaStar Life Insurance Company was established in 1885 and acquired by ING in 2000.  ReliaStar Life Insurance Company is “A” (Excellent) rated by A.M. Best.
  10. United of Omaha Life Insurance Company-In 1909, Mutual of Omaha, original known as Mutual Benefit Health & Accident Association, filed articles of incorporation with the Nebraska Insurance Department. They have an  “A+” (Superior) rating.

*Based on $300k for a 20 year term

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