Life insurance on a mortgage can leave your spouse or loved ones with the money needed to pay off your outstanding mortgage loan in case you die.
On the other hand, your lender may require you to buy private mortgage insurance depending on the amount of money you put down as a down payment on your home.
Usually, if you are putting down 5% or less as a down payment when purchasing your home, the lender may require you to purchase private mortgage insurance which protects the lender in case you die before the loan is fully paid off.
The main benefits of buying regular life insurance to protect your mortgage include the low rates for coverage, flexibility of choosing the term you need (10, 15, 20 or 30 years), and being able to choose who receives the death benefit. Your family members can be the beneficiary and they can use the money to not only pay for the mortgage, but for any other purpose as well.
In addition, regular life insurance does not decline in coverage each year.
Here's how to learn more about buying mortgage life insurance to protect your mortgage.