WHAT IS MORTGAGE PROTECTION INSURANCE?

Mortgage protection insurance is life insurance that’s designed to protect your family from burdensome mortgage payments if the primary income earner is no longer around to provide an income. Mortgage protection insurance is broadly similar to term life insurance in how it works. You buy a policy, pay regular premiums, and at the end of the policy term, your coverage ends. If you die during the term of the policy, a death benefit is paid out to your beneficiaries. However, mortgage protection insurance has a few key differences from term life insurance: your family members aren’t your beneficiaries and the death benefit amount decreases over time.

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• Mortgage protection insurance covers your mortgage payments if you die before paying off your balance

• The death benefit for mortgage protection insurance is paid out to your mortgage company or lender, not your family

• Because of mortgage protection insurance’s limited scope and high cost, term life insurance is a better coverage option for most people