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Mortgage Life Insurance

House being mortaged Mortgage Life Insurance is a type of term life insurance obtained by borrowers of a home mortgage. The amount of coverage decreases as the principal balance declines. In the event that the borrower dies while the policy is in force, the debt is automatically satisfied by insurance policy proceeds.

An owner of property who has taken out a mortgage on the property, can purchase morgage life insurance.

Mortgage Life Insurance pays off the mortgage upon the death of the mortgagor/owner. Premiums remain level, even as the policy's benefit decreases.

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