If you die or become disabled, your lender is still entitled to receive payment on your mortgage. If you become delinquent, the lender can foreclose on your home unless the mortgage is paid off or payments are made from some other source. A mortgage life insurance policy pays off your mortgage if you die. A mortgage disability policy covers your mortgage payments if you become disabled. Mortgage life/disability insurance is actually a specialized form of decreasing term insurance. This means that as your loan balance decreases, the amount of insurance decreases as well.

Should you consider purchasing mortgage life/disability insurance?
Mortgage life/disability insurance may be appropriate if your family would need to live in your home after you die or become disabled, but would be unable to continue making mortgage payments. You might also consider mortgage life/disability insurance if you or your spouse are in less-than-perfect health, as this type of policy may include a guaranteed insurability clause and may have lenient underwriting standards. 

Learn More...

Overview | Understanding The Basics | Types Of Insurance | Coverage Amounts
Choosing A Policy | Filing A Claim | Other Types Of Insurance | Home Safety Tips
Planning Concerns | Home Glossary

Please Note: The information contained in this Web site is provided solely as a source of general  information and resource.  It is a not a statement of contract and coverage may not apply in all areas or circumstances.  For a complete description of coverages, always read the insurance policy, including all endorsements.