Mortgage Insurance

Mortgage insurance is a class of insurance coverage where homeowner's policies and medical policies more or less merge for a specific purpose. Mortgage insurance is in effect specialized life and health insurance which provides benefits specifically to cover the balance of a home mortgage in the event that the mortgage holder (who is also the individual insured) dies or is injured and unable to make the mortgage payments for the period of time they are recovering or are disabled.

This type of policy is also referred to as mortgage redemption insurance and might be the kind of policy the head of a household would take out to insure that in the event of his death or disability his family did not lose their home.

Another variation on this idea is Private Mortgage Insurance which is actually required by the mortgage lending entity as security against default on the part of the mortgagor. More Terms Explained