Mortgage Life Insurance is a form of insurance specifically designed to protect a repayment mortgage. If the policyholder were to die while the mortgage life insurance was in force, the policy would pay out a capital sum that will be just sufficient to repay the outstanding mortgage.
Mortgage life insurance is supposed to protect the borrower's ability to repay the mortgage for the lifetime of the mortgage. This is in contrast to Private mortgage insurance, which is meant to protect the lender against the risk of default on the part of the borrower.
Read more about Mortgage Life Insurance: The Mechanics, The Controversy, Private Mortgage Insurance
Famous quotes containing the words mortgage, life and/or insurance:
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—James L. Hymes, Jr. (20th century)
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—Gwendolyn Brooks (b. 1917)