Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about The Mortgage Insurance Application Process and other Mortgage Protection Insurance topics.
When shopping for life insurance that can protect your family from losing your home after your death, it's important that you understand the difference between Mortgage Insurance Protection and mortgage life insurance.
Mortgage Insurance Protection is a term life insurance policy that pays a specified death benefit to your named beneficiaries if your death should occur during the term of the policy. Your death benefit can exceed the value of the mortgage of your home and can be used by your named beneficiaries for whatever expenses they see fit.
Mortgage life insurance is a term that often describes a life insurance policy that is used only to pay off your mortgage in the event of your death. The beneficiary is the bank that issued your mortgage, and the funds must be used exclusively on paying off the mortgage.