Mortgage Life Insurance

Mortgage Life Insurance is insurance that can be purchases from a lending institution.

Mortgage Life Insurance is very different from individuals life insurance because the coverage declines each year of declines as the mortgage declines. Some additional differences between Mortgage Life Insurance versus individual life insurance are the following: 

1. The bank is the beneficiary. On an individual life insurance policy the insured can choose their own beneficiary.

2. The coverage is not portable. This means that the insurance is tied to a specific mortgage. With an individual policy the insured can keep their coverage if the move homes, switch banks or eventually pay of their mortgage.

3. The plan ends as soon as one spouses away. An individual policy can be set up as a joint policy, meaning a joint or multi-life  policy, which allows the beneficiary to receive a double benefit in the event that both spouses pass away.

4. A Mortgage Life Insurance policy is not convertible to a permanent policy but an individual term life policy is convertible to a permanent plan without a medical.