What Does Mortgage Redemption Insurance Mean?
Mortgage redemption insurance is a type of decreasing-term life insurance policy. Its purpose is to provide policyholders a way to have their mortgages paid off if they die before it is fully paid. This prevents the full burden of paying the mortgage from falling on the surviving family members' shoulders.
Insuranceopedia Explains Mortgage Redemption Insurance
Mortgage redemption insurance is just another type of life insurance that can help beneficiaries if the policyholder dies. Mortgages are often worth hundreds of thousands, if not millions, of dollars. So, if the primary breadwinner dies suddenly, it can leave the surviving family members in a very difficult financial situation.
How much the insurance will pay varies, but in many cases, it can pay off the entire remaining balance on a mortgage.