Mortgage Life Insurance Needs Calculator
What this housing protection estimate tests: This tool compares a mortgage-payoff strategy with a payment bridge and sale strategy. It also values continuing housing costs and subtracts resources reserved for housing.
Estimate life insurance for a mortgage using principal, transition costs, continued housing expenses, savings and existing coverage.
Which housing outcome should the policy fund?
Model a payoff, a transition period or continued housing costs. Do not assume every survivor needs the same outcome.
Choose the survivor's housing decision before calculating
The payoff scenario uses the mortgage principal. The bridge scenario uses scheduled mortgage payments plus selling costs. Both add a transition reserve and the present value of continuing housing costs, then subtract housing resources.
Housing scenario
A household can compare paying off a $420,000 mortgage with funding two years of payments and selling costs, then add a transition reserve and continuing taxes, insurance and maintenance.
Is this the right calculator for a housing-only decision?
Use it when
Use this page to test one housing outcome, such as paying off the mortgage or funding several years of continued housing costs.
Use the household calculator when
It covers housing only and should not replace a full household analysis. Use the main calculator for income, education, debts and other family needs.
Build a complete household coverage estimateAvoid counting housing twice
- The tool does not amortize the loan or estimate a future home sale price.
- Housing costs should not be counted again in a separate income replacement input.
- A decreasing mortgage balance may call for scenario updates over time.
Mortgage protection questions
Should life insurance always equal the mortgage balance?
No. Survivors may sell, refinance or continue payments, and taxes and maintenance remain after payoff. Model the intended housing outcome.
Can mortgage costs be counted twice?
Yes. If full payoff is included, remove principal and interest from a separate income-replacement estimate. Keep expenses that would continue.
Related life insurance guidance
Read mortgage protection with life insurance and use the life insurance glossary for contract wording.