credit or deBt insUrance

Life, health, home and auto insurance are the most common types of insurance products, but there
also insurance products available to cover you if you become unable to pay your insurance premiums
for reasons such as illness, accident or death.
Mortgage disability insurance makes mortgage payments to your lender for a specified time if you
cannot work due to a severe injury or illness.
Mortgage default insurance protects the mortgage lender if you cannot make your mortgage payments.
Mortgage default insurance is required by law if your down payment is less than 20 percent of the
purchase price of the home.

Mortgage default insurance protects the lender. It does not protect you as a homeowner. If you
do not make your mortgage payments, your lender can take ownership of your property.

Credit protection insurance makes the minimum monthly payments on a credit card, loan, line of
credit or other debt for a specified time if you cannot work due to severe injury or illness.
You will still be responsible for paying the balance when you recover or after the coverage period ends.
Mortgage life insurance pays the remaining balance on your mortgage to the lender in the event of
your death.
As you pay down your mortgage over time, the amount that the insurer will pay you if you die (i.e.
the outstanding mortgage balance) is reduced. However, the payments generally remain the same.
Be aware that mortgage life insurance may be subject to claim investigation and often has very strict
exclusions relating to pre-existing conditions. Read your policy carefully and make sure you understand
what is covered.

Credit balance insurance pays the remaining credit card balance, bank, line of credit or other debt in
full, to the lender at the time of your death. Be aware that credit balance insurance may be subject to
claim investigation and often has very strict exclusions relating to pre-existing conditions. Read your
policy carefully and make sure you understand what is covered.
If you are considering buying mortgage life insurance or credit balance insurance, compare the
coverage offered with other options, such as a term life insurance policy..