Does Mortgage Insurance Cover Death? Confused about whether “mortgage insurance” actually pays out if you die—or if it just protects the lender? This video clears up the difference between mortgage protection insurance (a type of life insurance) and PMI (private mortgage insurance), which only protects the bank if you default, not your family. We’ll explain when mortgage protection insurance can pay off the loan at your death, how that benefit is structured, and when a regular term life policy m
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