Mortgage Life Insurance

See: Mortgage.

Regular life insurance pays a pre-set amount to your beneficiaries. You die choking on a fish bone...and your kids split your $500,000 life insurance benefit.

Mortgage life insurance has a similar structure. Pay premiums, get coverage for when you die. It just has a specific goal: to repay your mortgage. Instead of a check going to your chosen heirs, the money gets sent to your mortgage lender, squaring your loan.