Mortgage protection insurance operates like term life insurance—you make premium payments for the duration of the policy term and are covered while the policy is in place. Many insurers issue policies that are the same length as the term of the covered mortgage, but policies may be available in Ten- Fifteen - Twenty – Twenty-Five and Thirty-year increments.

If you die during the coverage period, the death benefit is paid to the mortgage lender. Your loved ones will receive all the proceeds from the policy, to pay the mortgage in full so they do not have to worry about making house payments. Some mortgage protection policies also cover mortgage payments for a set period if you become unemployed or disabled.