Mortgage life insurance pays off your mortgage if you die. Lenders offer “creditor” insurance at signing, but the benefit shrinks as you pay down the loan, it is payable to the lender, and it may be underwritten only when a claim is made. A personal term policy sized to your mortgage often costs less, keeps a level benefit, pays your family directly and moves with you when you switch lenders or renew.
Mortgage Life Insurance vs Term Life Insurance: What to Choose in 2026
Bank mortgage insurance pays your lender a shrinking amount, while personal term life pays your family a level benefit and moves with you. Here is how to compare them at renewal.
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