Mortgage Protection Insurance: Helping Your Family Keep the Home

Mortgage Protection in plain language.

Life insurance arranged with your mortgage in mind. If you pass away during the coverage period, the benefit is intended to help your family pay the mortgage or stay in the home.

It does not cover damage to the property, and it is not private mortgage insurance (PMI), which protects the lender. Depending on the policy, it may not cover job loss or disability unless specific riders are included.

Homeowners, especially those with a new mortgage or a household that relies on one or two incomes to make the payment.

Coverage is usually sized to your mortgage balance and term. With most policies the benefit is paid to the beneficiary you choose, who decides how to use it. Some policies have a benefit that decreases as the loan is paid down.

Premiums and eligibility are set by the insurance carrier, usually based on factors such as age, health, the amount of coverage and the features of the policy. Some policies require a medical exam and others rely on health questions; requirements vary by carrier.

It is often a term life policy sized around the loan amount and length. It is separate from homeowners insurance and from private mortgage insurance (PMI), which protects the lender.