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Back to questions How does mortgage protection term insurance differ from other types of term life insurance?

April 26, 2017differ Insurance mortgage term term life insurance types

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Back to questions How does mortgage protection term insurance differ from other types of term life insurance?

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The face amount under mortgage protection term insurance decreases over time, consistent with the projected annual decreases in the outstanding balance of a mortgage loan. Mortgage protection policies generally cover a range of mortgage repayment periods, e.g., 15, 20, 25 or 30 years. Although the death benefit decreases, the premium is usually level in amount. Further, the premium payment period often is shorter than the maximum period of insurance coverage–for example, a 20-year mortgage protection policy might require that premiums be paid over the first 17 years.