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Life Insurance Pay for Mortgage Can an existing life insurance policy be used to provide for the repayment of an outstanding mortgage loan?

April 26, 2017existing Life Insurance mortgage mortgage loan pay policy repayment Used

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Life Insurance Pay for Mortgage Can an existing life insurance policy be used to provide for the repayment of an outstanding mortgage loan?

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Yes; the purchase of a new mortgage protection term insurance policy is usually not required by the lender.. An existing policy, either term or cash-value life insurance, can be used for many purposes, including paying off an outstanding mortgage loan balance in the event of the insured’s death.