What is mortgage insurance? Let me consult Mr. Wiki about it. Mortgage Life Insurance refers to an insurance policy that guarantees repayment of a mortgage loan in the event of death or, possibly, disability of the mortgagor. Getting a mortgage insurance is one way of taking care of your family in any and all circumstances. protection you loved ones has never been easier, but another way that you can do this is getting a burial insurance. Imagine this, could you afford to pay your mortgage if you lost your job or were too ill or injured to work? Taking out a mortgage can be a scary proposition. Now imagine if the principal breadwinner dies. How will you make the payments? mortgage protection insurance covers this potential financial disaster. With a term life insurance policy your beneficiaries would have much more flexibility You can purchase a policy when you first buy your home, and sometimes must buy it within a certain time period after closing escrow. Most of us would struggle – especially because so many of us are now taking out super-size mortgages to cope with today’s high house prices. Worries about the future are one reason why mortgage insurance is suddenly back in fashion. The insurance promises to pay our mortgages for us if the worst happens, and demand for policies is rising fast now that interest rates and unemployment are both on the way back up. If you pick the best mortgage insurance policy then your monthly premiums will be relatively modest and your peace of mind can be secure. If you pick badly you can end up paying far more than you need for a policy that might let you down when you need it most.