Should I get life insurance to cover my mortgage?

Protecting your family's home is one of the most common reasons Nevadans purchase life insurance. If you die with a mortgage outstanding, your surviving spouse or children could face foreclosure unless they can cover the payments on a single income.

A term policy matching your mortgage balance and repayment timeline is the most cost-efficient approach. For example, if you have a $600,000 mortgage with 25 years remaining, a 25-year term policy for $600,000 (illustrative; actual coverage needs vary) ensures the home can be paid off at your death.

Mortgage life insurance sold by lenders is another option, but these policies decline in value as your balance drops while premiums stay flat—making standalone term insurance generally more flexible. Permanent life insurance can also serve this purpose while building cash value simultaneously.

Note that your coverage needs extend beyond the mortgage alone: income replacement, daily expenses, and education costs should also factor into your total coverage amount. Our coverage calculator can help you model the full picture.