What is Mortgage Insurance? Mortgage Insurance, sometimes referred to as Mortgage Life Insurance or Creditor Insurance, is a Life Insurance Policy that pays the balance, or a pre-determined amount of your mortgage to the lending institution if a person listed on the mortgage passes away, becomes disabled, is diagnosed with a critical illness, or is diagnosed with a terminal illness. The benefits, details of coverage, and conditions will vary depending upon the policy, your participating lender, and the product. Regardless of your policy, the benefits are paid directly to your lender.
Do I need Mortgage Insurance? In the event of your death, a disability, critical illness or terminal illness, would your family be able to keep up the mortgage payments? You can protect your family home with Mortgage Insurance. This flexible, low cost insurance can ensure that your family doesn’t lose their home in the event of personal tragedy.
What does Mortgage Insurance cost? The cost of Mortgage Insurance is based on your age when you apply and the amount of your mortgage. Your premiums will not increase for the term of your mortgage, even as you get older.