Mortgage protection insurance is a life insurance policy. What type of mortgage protection insurance do you need? That’s why you may want to consider mortgage protection insurance instead. They may have other expenses to cover as well. And, your family’s financial needs may go beyond just a mortgage. Mortgage insurance pays all or part of your mortgage debt, but it doesn’t leave any money for your family. Instead, it goes directly to your bank or mortgage lender. But the money won’t go to any beneficiary. It can only be used to pay off some or all of the remaining amount owed on your mortgage in the event of your death. Mortgage insurance through a bank or lender, however, works differently. When buying insurance, remember to make sure that you have enough coverage to meet your family's financial needs, whether it's making mortgage payments, paying off debts or anything else. For example, they can use that money to cover: With life insurance, you’re leaving your beneficiaries with the flexibility to use the death benefit in any way, for any reason. select a beneficiary to inherit the death benefit.keep your coverage even if you move, and. keep your coverage even as you pay off your mortgage,.With a life insurance policy, you get to: (The exact amount they’ll get depends on how much coverage you have.) In such a case, with an active life insurance policy, your beneficiaries would receive a tax-free amount of money, called the death benefit. Mortgage protection insurance is a life insurance policy that offers your family or beneficiaries a certain amount of money if you were to die. They sound similar, but they’re not the same. But do you really need it? Or do you need mortgage protection insurance instead? Thinking of buying a new home? Your mortgage lender may offer the option of buying mortgage insurance (also known as creditor insurance).
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