What would happen if you were to pass away before the mortgage on your home is paid off? Will your loved ones have enough money to keep current on the loan?
One option is mortgage protection insurance, also called mortgage life insurance, which pays off your mortgage in the event of your passing. Mortgage protection insurance isn’t right for everyone, however, so it’s important to weigh the pros and cons carefully, and understand how this type of policy contrasts with other kinds of insurance.
What does mortgage protection insurance do?
Mortgage protection or mortgage life insurance is a form of life insurance that’s designed to pay off your mortgage debt in the event you pass away before the balance is paid in full.
“Typically, mortgage protection insurance is sold as an option after closing on your home,” explains Herb Dorow, an agent with Maris Brown Insurance Group in Rochester Hills,