Life insurance and your mortgage
How life insurance can help your family keep their footing.
A mortgage often represents one of a household’s largest ongoing commitments. If someone whose income supports that payment dies, life insurance may help beneficiaries manage the remaining balance or monthly payments, depending on the policy and its benefits.
Mortgage protection life insurance and private mortgage insurance serve different purposes. PMI generally protects the lender if a borrower defaults. Life insurance can provide a benefit to a named beneficiary when the insured dies while coverage is in force.
Your mortgage is only one part of the picture. Consider income replacement, childcare, education costs, and other debt as well. Review any existing coverage before adding a policy, and ask who receives the benefit and whether the coverage amount changes over time.
Learn more from Consumer Financial Protection Bureau: Understanding mortgage insurance.