The mortgage term life insurance pays the beneficiary with amount covered in case the borrower suffers from critical illness, incapacitating accident, or depressing death. The borrower brings home the income to repay the mortgage. With loss of income from critical illness, incapacitating accident, or depressing death of the borrower, the family needs to fend off to repay the mortgage themselves.

The borrower can choose the amount of coverage on the insurance policy. Unlike the mortgage life insurance, the mortgage term life insurance retains amount of coverage as the borrower pays off the mortgage. As the borrower paid off the mortgage, the insurance policy continues. The insurance policy only terminates, when the borrower terminates the insurance policy.

The borrower usually pays the slightly higher premiums with mortgage term life insurance than mortgage life insurance. However, the beneficiary for mortgage term life insurance is the family, co-borrowers, and co-guarantors of the borrower. So, the family, co-borrowers, and co-guarantors can do whatever with the amount coverage. This is a great advantage, because the beneficiary may decide to repay the mortgage, invest the amount coverage, or spend on other expenses. Actually, the borrower can choose whoever the beneficiaries are. Sometimes, it is not necessarily advantageous for the beneficiary to repay the mortgage. In a mortgage life insurance, the beneficiary is the mortgage lender. Now, the mortgage lender can do whatever on the amount coverage.

When the borrower engages in mortgage refinancing, the insurance policy goes with the borrower. The borrower retains the coverage when the borrower sells the home, and buys a new home.

After the thirty days of mortgage approval, the insurance company requires medical exam. The insurance company worries that the borrower may already suffer from critical illness.

The premiums are base on age. The premiums go higher as the borrower gets older. The premium rate for each age group depends on the insurance company.

Dennis Estrada is a webmaster of mortgage calculators, mortgage life insurance, and mortgage refinancing website which calculate the monthly payment, bi-weekly payment, affordability, refinance, annual percentage rate, discount points, and more.