An insurance policy to repay your home loan in case you die

Mortgage life insurance can be an expensive way to protect your loved ones. It makes the lender the beneficiary of the policy; so if you die, the lender, not your heirs decides what to do with all the insurance money. Some life insurance companies continue to make monthly mortgage payments instead of paying off the mortgage in full. The premiums for mortgage life insurance are based on your age and the mortgage balance.