Which is better, mortgage protection or mortgage life insurance?
That depends on what you want your policy to accomplish and what you can afford to pay.
Usually, if you are putting down 5% to buy your home, your insurer may require you to buy mortgage payment protection insurance. This would pay your premiums in case you get injured (become disabled), or it pays out a death benefit if you die. The mortgage company is named as the beneficiary and gets the insurance if you die, not your family.
However, if you are putting don't more than 5% when buying your home, and the mortgage company is not requiring you to buy mortgage payment protection insurance, you may want to consider mortgage life insurance.
Mortgage life insurance pays out a death benefit if you die. The money paid to your beneficiary can be used to pay off the mortgage, or for any purpose. You choose the beneficiary of the mortgage life insurance policy, so your family could get the money if you die.
Also, mortgage life insurance costs a lot less than mortgage protection plans because they do not pay your premiums if you become disabled.
In addition, you could have mortgage payment protection for your mortgage holder, and a term life insurance plan to protect your family.
Mortgage term life insurance can provide affordable rates on protection for up to 30 years of coverage. You could name your spouse, or family members as the beneficiary, and they could receive the money upon your death. They could then use the life insurance proceeds to pay the mortgage, provide for living expenses, or any other needs they have.
Here's how you can learn more about mortgage life insurance and how it works.