What is mortgage protection insurance?
Mortgage protection insurance is, in most cases, a term life insurance policy chosen to match the size and length of your home loan. The general idea: if you pass away while you still owe on the house, your beneficiary receives a benefit they can put toward the mortgage rather than having to sell or scramble.
Unlike some bank-offered mortgage insurance that may pay the lender directly, a life-insurance-based policy generally pays your named beneficiary, who can decide how to use the money. The exact structure varies by policy and carrier.