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:
“The mortgage is still in our name but, increasingly, the house is theirs. One diaper, one vote.”
—Fred G. Gosman (20th century)
“The spring is here, young and beautiful as ever, and absolutely shocking in its display of reckless maternity; but the Judas tree will bloom for you on the Bosphorus if you get there in time. No one ever loved the dog-wood and Judas tree as I have done, and it is my one crown of life to be sure that I am going to take them with me to heaven to enjoy real happiness with the Virgin and them.”
—Henry Brooks Adams (1838–1918)
“Women hock their jewels and their husbands’ insurance policies to acquire an unaccustomed shade in hair or crêpe de chine. Why then is it that when anyone commits anything novel in the arts he should be always greeted by this same peevish howl of pain and surprise? One is led to suspect that the interest people show in these much talked of commodities, painting, music, and writing, cannot be very deep or very genuine when they so wince under an unexpected impact.”
—John Dos Passos (1896–1970)