Life Insurance Basics
What is mortgage protection life insurance?
Mortgage protection life insurance is a term life insurance policy designed to pay off your mortgage if you die. The death benefit decreases as your mortgage balance decreases (decreasing term). Mortgage protection insurance is typically more expensive than a standard level term policy with the same initial death benefit.
Key Points
- Mortgage protection: term life policy designed to pay off your mortgage
- Death benefit decreases as mortgage balance decreases (decreasing term)
- More expensive than standard level term policy
- Level term policy: better value than mortgage protection insurance
- An independent agent can compare mortgage protection vs. standard term life insurance