InsuranceWorld.com - Mortgage Insurance

Mortgage Life Insurance

Ensure that your home and family are taken care of in the event of your death. Mortgage life insurance pays off your mortgage in the case of your death giving your loved ones peace of mind. Your lender or an affiliated insurance company will usually offer you this type of insurance when you get your mortgage. Mortgage life insurance is a type of term life insurance. The amount of insurance usually equals the amount of your mortgage loan. As well the amount of coverage decreases as you pay off your mortgage called Decreasing Term Insurance. Decreasing Term Insurance works if you are repaying the principal amount of your mortgage so that over time you will pay off the entire loan. There is no surrender value, once you pay off your mortgage you stop paying the insurance premiums.

If you are making interest only payments your coverage can remain at the same level this type of insurance is called Level Term Life Insurance. Level Term Life Insurance also has no surrender value once you reach the end of your term you stop paying the premiums.

Return of Premium Term Life Insurance returns all the premiums paid should you outlive the policy. These funds can be used for retirement, vacations, etc.

These types of insurance polices can be purchased for both partners and treats them as equal contributors to the mortgage. The insurance company will release the money to the surviving spouse or children. The insurance policy will be paid out if the policyholder becomes critically or terminally ill when you add a critical/terminal illness benefit to the policy.

Mortgage life insurance does not usually require a medical examination, a good option for those who are not able to get other types of life insurance because of ill health.