03/09/2023
What is mortgage protection insurance?
Thinking of buying a home? Your lender offers you mortgage insurance (also called creditor insurance), but do you really need it? Perhaps Mortgage Protection Insurance would be a better fit for you.
It sounds like the same thing, but it's the opposite.
Mortgage protection insurance is a life insurance policy that pays a certain amount of money to your family or beneficiaries when you die. If such a situation were to occur, your beneficiaries would receive a tax-free amount called a death benefit with a policy in force. (The exact amount depends on the coverage you choose).
With life insurance, you can :
Keep your coverage, even if you have paid off your mortgage;
Keep your coverage, even if you move;
Designate a beneficiary for the death benefit
With life insurance, you also let the beneficiaries use the death benefit as they see fit. For example, they can use it to pay for
the mortgage
debts
child care expenses
living expenses
