Life Insurance to Pay off Mortgage?

Can an existing life insurance policy be used to provide for the repayment of an outstanding mortgage loan?

Yes, an existing life insurance policy, either term life insurance or cash value life insurance, can be used for many purposes, including paying off an outstanding mortgage loan balance in the event of the insured’s death.

Although a lender may offer a mortgage protection term policy to you, the lender rarely requires it in order for you to get a mortgage loan.

Learn about life insurance to pay off your home mortgage loan