Skip to content

How does mortgage life insurance work?

February 6, 2013


Mortgage life insurance is term life insurance with a single purpose: to payoff your mortgage in the event of your death.

Your mortgage life insurance policy is tied to your mortgage in almost every way. At the time that you take your mortgage, whether on a purchase or refinance, the death benefit on insurance policy matched with the amount of your mortgage loan. The death benefit will decline as your mortgage is paid down. Once your mortgage is paid off, the life insurance goes away. In the event of your death, the proceeds of the policy will go right to your lender to payoff the mortgage on your house.

As to the specifics, there are variations depending on which insurance company you use as well as the particulars in your situation. It’s also important to remember that while a lender may recommend that you get mortgage life insurance, you are not required to get it.


Looking for a new career?  Apply to Platinum Today

With Platinum Mortgage you’ll enjoy competitive pay, benefits and rewards. With 23 years of experience, a solid reputation and a loyal customer base, we provide you with endless opportunity to develop your career. Our open and collaborative environment lets you grow both personally and professionally.

To be reviewed for hire by our team: Visit our website at and submit your resume and application to us!

Call or email a Platinum Representative for further inquiries.

800- 385-3657

In need of a loan?
FOR A FAST PRE-APPROVAL: Complete a loan application on our website

Follow our Mortgage on:

Follow our Realty on:,


No comments yet

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: