What lender-offered mortgage insurance covers, what it doesn't, and why a term policy matched to your amortization usually wins.
After you close, letters start arriving offering mortgage protection. Most are decreasing-benefit products that pay the lender directly and can't be repurposed if your family's priorities change.
A term policy you own, sized to the loan balance and term, pays your beneficiary instead. They can retire the mortgage, or keep paying it and use the balance for living expenses. That flexibility matters.
Riders worth considering
Disability and critical-illness riders address the more common scenario: income stops but no one dies. Both can keep the payment current through a recovery period.
Update it when you refinance
A refinance resets the term and often the balance. Coverage that matched the old loan will be misaligned with the new one, so a five-minute review after closing is worth the call.
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