If your purchase a new home with a mortgage, or if you refinance your home, you are sure to get some offers for a product called mortgage insurance or mortgage life insurance. The card in the mail, or the phone call on your answering machine, will probably offer to protect your home mortgage in case of death, and maybe disability, and critical illness. In addition, you will see some mention of mortgage unemployment benefits.

In general a mortgage life insurance policy is a no medical exam term life insurance policy with a face value that matches your mortgage balance. Sometimes other obligations are added in too, since there is really no rule about having the face value matching a mortgage in most cases. In some cases, this is a decreasing term life policy since the premiums will be lower since the coverage gets lower as time passes, matching a lower loan balance.

Sometimes the policy offers a ROP Term Life Rider which will actually refund the premiums if the insured person survives the policy. The unemployment benefit on most mortgage insurance policies simply pays the premium during unemployment, though other forms of mortgage unemployment benefits are available.

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