Mortgage Protection is a type of life insurance designed to pay off your mortgage or a portion of it if you pass away. It ensures that your loved ones can keep the family home and aren’t burdened with mortgage Protection payments during a difficult time.
Unlike traditional life insurance, this policy is specifically tied to the mortgage Protection balance.
Unlike traditional life insurance, this policy is specifically tied to the mortgage protection balance.
Coverage Amount
Typically matches the remaining mortgage Protection balance.
Some policies allow you to cover additional expenses such as property taxes or homeowner’s insurance.
Beneficiary
The mortgage Protection lender is usually the primary beneficiary, not your family.
The payout goes directly to pay off the mortgage.
Policy Term
Usually decreases over time as your mortgage protection balance decreases (decreasing term insurance).
Some policies may have level coverage, keeping the same benefit throughout the term.
Premiums
Often fixed or slightly decreasing over time.
Can depend on your age, health, and mortgage Protection amount.
