Mortgage Protection Insurance

Many people get very confused when they hear the term mortgage insurance. They get it confused with homeowners insurance sometimes. Other times, people think it sounds similar to PMI (Private Mortgage Insurance). But these are not what the term – mortgage protection insurance – refers to.

So take a moment to understand these 3 very different products. That knowledge should save you time and money.

PMI – This is a product that some lenders require you to buy to protect your loan in case you default. It does not really protect the borrower (you), but instead protects the mortgage company.

Homeowners Insurance - This product covers your home against damage or liability it claims. Most of these policies include coverage in case of a loss to your actual home, personal property, etc. It also should include liability coverage in case a visitor makes a claim against you. Many policies also include some sort of relocation plan in case you cannot live in your home while it is being rebuilt or repaired.

You can find top homeowners insurance company quotes.

Mortgage Protection Insurance – Mortgage insurance is also called mortgage life insurance sometimes. It is actually a term life insurance policy that is purchased to help pay off the loan in case one of the breadwinner(s) passes away. Some policies may also include the option to add disability insurance so the insured person will have money to make loan payments if they cannot work because of a disability.

Some of the top insurance companies market term life policies that are aimed at home owners. They try to make it as simple to apply for as possible, and you can find policies which provide hundreds of thousands of dollars worth of coverage that do not even require a medical exam. This is what is usually meant by Mortgage Protection Insurance.

Compare Mortgage Life Insurance Quotes Online

If you have recently purchased or refinanced a home, you may get some offers in the mail for insurance to protect your home against your death, disability, and (sometimes) critical illness. If this has interested you, why not run free online mortgage life quotes to compare companies before you select a particular agent?