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Mortgage life insurance is a specialized insurance policy that is designed to pay off a mortgage loan should the borrower die before it is paid in full. Typically mortgage insurance and other types of credit insurance such as unemployment or disability insurance do not require the same level of physical examinations or other application measures that a private life insurance policy would need. However, they have no cash value and only insure the balance on the loan.

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12y ago

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What is the purpose of mortgage protection life insurance?

The purpose of mortgage protection life insurance is to protect the home from being lost in the event the mortgagee passes away. The life insurance will pay off the balance of the existing mortgage to the finance company.


What are the key differences between mortgage protection insurance and life insurance?

Mortgage protection insurance is designed to pay off your mortgage if you die, while life insurance provides a lump sum payment to your beneficiaries when you die. Mortgage protection insurance is specific to your mortgage, while life insurance can be used for any purpose.


What is the difference between mortgage protection and life insurance?

Mortgage protection insurance is designed to pay off your mortgage if you die, while life insurance provides a lump sum payment to your beneficiaries when you die, which can be used for any purpose.


Does homeowners insurance pay off your mortgage if one of the homeowners dies?

No. For that kind of benefit you need mortgage insurance or a life insurance policy.No. For that kind of benefit you need mortgage insurance or a life insurance policy.No. For that kind of benefit you need mortgage insurance or a life insurance policy.No. For that kind of benefit you need mortgage insurance or a life insurance policy.


What is meant by 'pre-issuance' in regards to mortgage insurance?

What is the purpose and and benefits of per mortgage insurance


What is the purpose of mortgage insurance escrow and how does it impact the overall cost of a mortgage?

Mortgage insurance escrow is used to ensure that the required insurance premiums are paid on time. It impacts the overall cost of a mortgage by adding an additional monthly payment to cover the insurance costs, which can increase the total amount paid over the life of the loan.


What can one benefit out of mortgage life insurance?

Mortgage life insurance provides security for your family in the event that you were to pass away. It ensures that if that does occur and you have mortgage life insurance then your repayments will be covered.


Is the mortgage on a house pay off upon death?

No. Not unless there was some type of insurance in place to that effect, either mortgage insurance of a life insurance policy.No. Not unless there was some type of insurance in place to that effect, either mortgage insurance of a life insurance policy.No. Not unless there was some type of insurance in place to that effect, either mortgage insurance of a life insurance policy.No. Not unless there was some type of insurance in place to that effect, either mortgage insurance of a life insurance policy.


Who should have mortgage insurance?

Are you referring to mortgage insurance that is added to your monthly payment in case of default? Anyone with an ltv at 80% or greater. Or are you talking about mortgage life insurance? These are two very different things. You only need mortgage life insurance if you do not already have a life insurance policy that is adequate to pay off the mortgage.


Where can you buy instant mortgage life insurance online?

There are several options available online for websites providing information, quotes and the ability to apply online for mortgage life insurance. Make sure you understand the difference between mortgage protection insurance, and mortgage life insurance.


What type of life insurance often used as mortgage insurance?

The type of life insurance that is more than often used as mortgage insurance is known as decreasing term.


What type of life insurance is often used as mortgage insurance?

The type of life insurance that is more than often used as mortgage insurance is known as decreasing term.