Mortgage Protection vs. Mortgage Insurance
Understand the important difference between personally owned life insurance and lender protection.
The planning principle
Mortgage protection built with individually owned life insurance generally pays a death benefit to the named beneficiary. Mortgage insurance may protect the lender or address a different risk. Ownership, beneficiary rights, coverage amount, and policy terms should be understood before comparing them.
What to review
Start with the financial objective, then compare policy or contract provisions, affordability, guarantees, non-guaranteed elements where applicable, and the consequences of changing the plan later. Product availability and underwriting vary.
Use the complete planning guide.
The guide on the main topic page includes a worksheet and comparison questions you can use before a coverage conversation.
Get the Free GuideEducational information only. This page is not tax, legal, investment, or individualized insurance advice. Review actual carrier and policy materials before making a decision.