What is Mortgage Insurance?

Mortgage Insurance or Mortgage Life Insurance

After you buy a new home, you will probably get tons of cards in the mail with an offer for a product called mortgage insurance. The offers will probably tell you that you don't need a medical exam to apply for this insurance, and it will protect your home in case of death or disability. Most often this product also comes with an offer to return your premium in case you survive the term of the product.

We are actually talking about a term life insurance product. Now mortgage life insurance is a real insurance product which insurance companies develop to market to new home owners. They often do relax some underwriting requirements to issue it, figuring that if your mortgage company just offered you a mortgage you are a better risk. ie. credit and job wise you have already just been underwritten to some extent.

However, if you are healthy, you may be better off just applying for a regular term insurance policy. Generally, since underwriting is relaxed on mortgage term, they will rate everybody as a group.

TEXANS - GO HERE TO GET QUICK TERM LIFE QUOTES

U.S. GO HERE FOR A SHORT FORM THAT WILL GET YOU LIFE INSURANCE QUOTES