It's a type of life insurance policy that leaves your beneficiary the money needed to pay off the outstanding balance on your home mortgage loan when you die.
That way, your family can remain living in the home they shared with you, after you are no longer alive.
It's easy to understand: You choose a term life insurance policy that will last for the duration of your home mortgage loan.
So, if you have a 30 year mortgage, you choose a 30 year term life policy. and you select an amount of life insurance that matches the amount of money owed on your mortgage - for example: $300,000.
That way, if the owner of the home dies before the mortgage is paid off, the beneficiary receives the death benefit from the life insurance policy and can use the money to pay off the home mortgage, so your family can keep their home.
Learn more about how home payoff insurance works.