Mortgage Insurance
Mortgage
Life Insurance is a type of term life insurance obtained by borrowers
of a home mortgage. The amount of coverage decreases as the principal
balance declines. In the event that the borrower dies while the policy
is in force, the debt is automatically satisfied by insurance policy
proceeds.
An owner of property who has taken out a mortgage on the property, can purchase morgage life insurance.
Mortgage Life Insurance pays off the mortgage upon the death of the mortgagor/owner. Premiums remain level, even as the policy's benefit decreases.
