USAA Mortgage Protection Insurance Review: Worth It In 2023?

USAA Mortgage Protection Insurance Review

Kelly Maxwell

Editor’s Rating: 3/5 Stars

Summary

USAA mortgage protection has a low number of complaints, however, they have limited options for your insurance needs. Also, their no medical exam policy is only available to people ages 21-35. You can find better options elsewhere.

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As a USAA member myself, I am a huge fan of what USAA offers.

However, their mortgage protection insurance leaves much to be desired.

This article covers all that USAA mortgage protection insurance offers and our recommendation for their mortgage protection product.

Compare 15+ of the top-rated mortgage protection companies by filling out our quoter for free.

Table Of Contents

• Product Offerings
• Term
• Essential
• Permanent
• Rates
• Summary
  
  

USAA Mortgage Protection Product Offerings

USAA has a few different products to protect your mortgage.

Term Mortgage Protection

This is your standard mortgage protection product that requires a medical exam with term lengths of 10, 15, 20, 25, and 30 years. Most people get 20+ term lengths to cover their mortgage, which is usually 20-30 years.

You can get mortgage protection coverage from $100,000 to $10 million, which is a very high amount.

Unfortunately, if you need something less than $100,000 in coverage then you are out of luck.

Some additional benefits of USAA mortgage protection if you are in the military are:

• Coverage while in war (most companies don’t do this)
• Guaranteed an issued policy after leaving the military if you don’t have a policy
• Replace servicemember’s group life insurance with USAA term mortgage protection if you leave the military

These can be very attractive benefits for people currently in the military.

Essential Term Mortgage Protection

USAA’s Essential Term mortgage protection product is their no medical exam policy.

Unfortunately, only those ages 18-35 qualify for this product.

It also goes up every year you want to keep the coverage, there is no level term, so this product can be very expensive.

We don’t recommend it if you are between those ages.

Permanent Mortgage Protection

USAA also has some permanent mortgage protection policies that last for life, but these are very expensive, especially for older people not in their 20s or 30s anymore.

If you are looking for mortgage protection, it is usually best to buy term mortgage protection as your mortgage will be paid off at some point anyway.

If you absolutely need permanent mortgage protection for life, there are other companies with better rates out there.

USAA Mortgage Protection Rates

USAA Mortgage protection rates are above-average.

For their fully underwritten policies that require a medical exam, prices can vary greatly depending on the results of your medical exam.

Often times they will come back and offer you much higher rates after the exam.

For the simplified issue product with no medical exam, rates are even worse. Every year the rate will increase and you can find better simplified issue mortgage protection policies with no medical exam elsewhere that do not increase every year.

Overall, our biggest gripe with USAA is their rates are above-average. Why pay more for something that has the same or better quality elsewhere?

Summary

Overall, there are only a few scenarios where we would recommend USAA for your mortgage protection needs.

If you are an active-duty member in a warzone, USAA mortgage protection might be for you.

If you are worried about your health or body upon leaving the military, USAA mortgage protection might be for you.

Other than that, there is no reason to go with USAA for mortgage protection.

Their rates are high and you can save a lot of money elsewhere, especially if you are over 40.

If you want to compare rates among all of the top-rated mortgage protection insurance companies that DO NOT require a medical exam, fill out our quoter now.

We also offer fully underwritten policies with a medical exam, but rates will vary for those policies depending on the results of the exam. Contact us to get estimates for those as well.

We look forward to hearing from you!

FAQs