In todays fragile economy, mortgage protection insurance makes more sense than ever. Not to be confused with private mortgage insurance, often simply abbreviated to PMI, mortgage protection insurance is designed to pay off your mortgage, or make payments toward your mortgage for a specified period of time, if certain specific events make it impossible for you to make your mortgage payments. As with any kind of financial product, it is very important to assess your needs, and carefully examine the insurance policies available to you before you make a decision to buy mortgage protection insurance. Below are things you need to know about mortgage protection insurance before you buy.
What is mortgage protection insurance?
There are two kinds of mortgage protection insurance, commonly called mortgage protection life insurance and mortgage protection payment insurance. Mortgage protection life insurance is designed to pay off the remainder of your mortgage if you should die before