 TITLE: What is Mortgage Protection Insurance? CONTENT: Pros and Cons of Mortgage Protection Insurance\n----------------------------------------------\nIt's important to understand how mortgage protection insurance works and consider the pros and cons before deciding if a policy is right for you.\nSome key benefits to keep in mind:\n*   **Peace of mind**: You may feel at ease knowing mortgage payments won't be a burden to your family if you pass away.\n*   **Possibly cheaper than life insurance, a common alternative**: Suppose you can't get affordable life insurance because of your age or health. In that case, a mortgage protection policy with affordable premiums may be a better fit.\n*   **No underwriting**: When you apply for life insurance, an underwriter will evaluate your application to determine how much risk you pose to the insurer. A medical exam is usually required, and if the results are unfavorable, you may be denied life insurance. Mortgage protection policies do not require underwriting and are generally easier to secure.\nThere are also drawbacks of mortgage protection insurance to consider:\n*   **Limited death benefit**: A term life insurance policy gives your family the flexibility of making mortgage payments and covering other expenses after you pass away. But mortgage protection insurance is limited in scope. It provides no tangible benefit to your loved ones beyond paying the mortgage in full.\n*   **The value of the policy decreases over time**: The premium payment will remain the same over the policy term; however, the death benefit will be reduced as time progresses to match the loan's outstanding balance.\n*   **A life insurance policy may be the wiser move**: Given that mortgage protection insurance will only cover your mortgage, and won't replace lost wages or cover end-of-life expenses such as burial, you may instead opt for a life insurance policy. A life insurance policy pays out if you die while the policy is in place, but the beneficiary can use the payment for anything—including the mortgage. END