The short answer
You take care of patients all day. Here is how to make sure the house is taken care of too.
A personal policy is the simplest way.
Part of our complete guide: Mortgage Protection Insurance: The Complete Guide.
Quick answer
Hospital group life ends when you leave the job. Your health, not your job title, drives the rate. Riders and disability insurance protect against injuries.
MarketView Agency is an independent insurance agency (National Producer Number 18345705).
On this page
- Mortgage protection for nurses: what does hospital group life insurance really cover?
- How do insurers look at a healthcare worker's application?
- When a back injury stops a paycheck
- Optional riders and what they do
- How long should the policy last?
- What if you miss a payment?
- Level term vs. decreasing term
- Is mortgage protection right for a nurse or healthcare worker?
- Frequently asked questions
Mortgage protection for nurses: what does hospital group life insurance really cover?
Hospitals and health systems often include group life insurance, usually a set amount or a multiple of salary. It is useful, but it may not cover the mortgage, and it ends when you leave the employer.
- Travel and agency nurses may go between assignments without employer coverage.
- Day-rate and part-time roles may not qualify for group benefits at all.
- A personal policy stays in force no matter where you work next.
How do insurers look at a healthcare worker's application?
Healthcare workers often understand underwriting better than most applicants, which helps. Insurers still check prescription history and medical records, so list medications and diagnoses accurately, including ones you manage yourself.
Your job itself rarely changes the rate class. Your own health, height and weight, tobacco use and family history matter most, and each carrier weighs them a little differently.
Tip: Bring a list of your current prescriptions and doses to the application call. It speeds things up and avoids mistakes.
Compare rates from several carriers in about two minutes. Free, no obligation.
When a back injury stops a paycheck
Nursing and patient care are physical jobs. A back or shoulder injury can stop your income even when it is not life-threatening, and the mortgage is still due.
- Ask about a waiver of premium rider, which can keep the policy going during a covered disability.
- Look at living benefits that pay part of the benefit early after a qualifying serious illness.
- Consider separate disability insurance for income, since life insurance doesn't replace a paycheck while you are alive.
Optional riders and what they do
A rider is an option you add to a policy. Some are built in at no extra cost, others add to the premium. Availability and terms vary by carrier and state, so check the details of any policy you consider.
- Accelerated death benefit. Lets you access part of the benefit early if you are diagnosed with a terminal illness, and on some policies a chronic or critical illness.
- Waiver of premium. Keeps the policy in force without payments if you become totally disabled, as defined in the policy.
- Return of premium. Refunds premiums you paid if you outlive the term and the policy stays in force. It costs more.
- Child rider. Adds a small amount of coverage for your children under your policy.
- Disability income or payment rider. Some policies can pay a monthly amount for a set period if you cannot work due to a covered disability.
Riders are useful, but each one adds cost or complexity. Pick the ones that fit a real worry, and skip the rest.
How long should the policy last?
Think about two dates: when your mortgage will be paid off, and when your family would no longer depend on your income. The policy should usually last until the later of the two.
Many homeowners pick a 20- or 30-year term at closing. If you bought years ago, a shorter term may match what is left. Some people stack two policies, a longer one for income and a shorter one for the loan, so coverage drops as needs drop.
How to get covered in 3 steps
- Check your rate. Pick your state and answer a few quick questions about the coverage you want.
- Compare carriers. A licensed agent compares mortgage protection options from several insurers and explains the trade-offs.
- Apply and get covered. Many applications take one phone call. Coverage starts once the policy is issued and the first premium is paid.
What if you miss a payment?
Life insurance only works if it is in force when it is needed. Premiums can usually be paid monthly, quarterly or yearly. Paying yearly can cost a little less overall.
If you miss a payment, most policies have a grace period, often about a month, when coverage continues. After that the policy can lapse. Some policies can be reinstated within a set time, but the insurer may ask new health questions.
Tip: Automatic payments from a checking account are the simplest way to avoid a lapse.
Level term vs. decreasing term
Mortgage protection comes in two main shapes. With level term, the benefit stays the same for the whole term. With decreasing term, the benefit drops over time, roughly in step with your loan balance.
| Feature | Level term | Decreasing term |
|---|---|---|
| Benefit over time | Stays the same | Goes down |
| Price over time | Usually level | Usually level |
| Left over after the loan is paid | Often money left for your family | Little or nothing |
| Best for | Mortgage plus other needs | Covering the loan balance only |
Many people pick level term. The price difference is often small, and your family keeps any money beyond the loan balance.
Is mortgage protection right for a nurse or healthcare worker?
Often a good fit
- you change employers or take travel assignments and want coverage that follows you.
- your group life is less than your mortgage.
Maybe not the right fit
- a spouse's coverage and your savings already cover the home.
- what you need most is disability income protection; start there.