Mortgage Insurance

by lakemen » Sat Jul 08, 2006 07:18 am
Posts: 1260
Joined: 18 May 2005

Mortgage Insurance

A form of decreasing term insurance that covers the life of a person taking out a mortgage. Death benefits provide for payment of the outstanding balance of the loan. Coverage is in decreasing term insurance, so the amount of coverage decreases as the debt decreases. A variant, mortgage unemployment insurance pays the mortgage of a policyholder who becomes involuntarily unemployed.

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