Mortgage Protection Life Insurance?

What is Mortgage Protection Insurance?

Mortgage life insurance vs. mortgage protection insurance

You may hear mortgage life insurance termed mortgage protection insurance or just mortgage insurance, but frequently, the latter two mean something different.

Mortgage insurance or mortgage protection insurance can refer to a form of credit protection insurance (not strictly life insurance) which a lender may actually require you to buy before giving you a mortgage. Credit protection insurance has a bad rap because it is imposed on the buyer (you) and because its intent is not to protect your family but to protect the finances of the lender.

Mortgage life insurance yields roughly the same result as mortgage protection insurance: the lender gets his/her money and your family is not forced out of its home. 

However, mortgage life insurance is completely voluntary, and that freedom allows you choose the best coverage for your circumstances.

Mortgage Protection Life Insurance is a simple Term Life Coverage Policy which offers variations within it's function.

It can be on a level term base premium and coverage, or a type of decreasing term coverage with level premium.

The one thing to consider for this type of coverage is the Industry has shifted and it's views on offering this type of coverage.

Many companies today have actually started discontinuing this Mortgage Life Insurance Protection coverage for new sales, those accounts in force will continue with the actual contract.

With additional Insurance coverage and  programs now available a person still has the option to protect their mortgage on the home, be sure to speak with a professional in regards to what will fit your needs.

If you are considering purchasing life insurance, call for a free consultation today.