Life insurance for mortgages is coverage that can be purchased as a mortgage borrower. It is designed to pay off the mortgage or pay it down if the policyholder dies. The insurance money that is payable under the selected coverage chosen by the policyholder is always applied to the mortgage balance. This can be used to help the family of the deceased stays in their home, even if the sole income to complete the mortgage payment is no longer there.
Mortgage life insurance can be easily set up at the bank along side the process of setting up the mortgage. It may actually be easier to set up mortgage life insurance than personal life insurance. It also has an easy application process. As life insurance for mortgages is group insurance, this can result in lower premiums due to the risk being spread out over a large group of people.
Mortgage life insurance covers the balance of the mortgage, which gradually decreases as the mortgage is paid off. However, mortgage life insurance usually ends when the mortgage is paid off for the home. It can be provided through a monetary company and is normally quick and easy to arrange and requires only a few health-related questions.