Mortgage insurance is an insurance policy that pays a lender if the borrower defaults on the mortgage. It is for the benefit of the lender. However, mortgage life insurance, also known as mortgage protection insurance, is a life insurance policy that will pay off the outstanding mortgage balance if the insured dies prior to the final payment of the original loan term. It is for the benefit of the surviving borrower.
What is the difference between mortgage insurance and mortgage life insurance?
Posted on: 04.30.14