Mortgage protection insurance will pay off the value of your home in the event of death or disability. As with life insurance, the policyholder pays set premiums. Depending on the policy, the benefit may exceed the cost of paying off the mortgage. Mortgage protection insurance is typically easier to obtain than standard life insurance.
Mortgage protection insurance provides peace of mind in the event of an accident that causes the death or disability of the policyholder. Many types of mortgage protection policies will pay out the full amount of the original mortgage in the event of a death, not just the balance due on the loan. When a disabling injury occurs, mortgage protection insurance enables policyholders to continue making their monthly mortgage payments.