Mortgage Life Insurance

• Life Insurance policies specifically designed to pay off the mortgage often require payments over the term of the mortgage. If you obtain one of these policies through your lender, the premium is often included in your monthly mortgage payment. One type of mortgage life insurance provides a return a premium feature, which means you will receive all or some of your premiums back if you don't use the policy. Should you die before the end of the mortgage, then the policy pays off the mortgage, relieving your heirs of that responsibility.
  
  

Term Life Insurance

• Life insurance to pay off a mortgage doesn't have to only come from a specialized mortgage life insurance policy. Term life insurance provides lower premiums for a fixed amount of insurance, which usually provides a fixed premium rate. Most mortgages require 30 years of payments, and many life insurance companies offer term life insurance with 30-year terms. If your mortgage lasts for less than 30 years, it's likely you can find term life insurance with a term that matches your mortgage.
  
  

Whole Life Insurance

• Whole life insurance provides a guaranteed premium, guaranteed benefit and provides cash value, which increases over the life of the policy. Homeowners may use whole life insurance policies to cover their mortgage in the event of their debt. Many whole life policies allow their policyholders to access the cash value through loans during the insurance term.
  
  

Universal Life Insurance

• Homeowners may also purchase universal life insurance policies. Universal life insurance policies provide flexible payment options and provide a cash value similar to whole life insurance policies. Some universal life insurance policies may invest in mutual funds or other investment vehicles, making them variable universal life insurance policies. The minimum premiums tend to increase each year on the universal life insurance policies, unlike term and whole life insurance policies, which have fixed premiums.
  
  

Choosing the Right Policy

• Speak to a life insurance specialist about your needs for life insurance. Even though many employers provide life insurance as a benefit, it may not be enough to cover all of your expenses in the event of your death. You may wish to provide an income or your family, pay for college and pay for your funeral expenses in addition to paying off your mortgage.