Getting life insurance is important for most Americans, especially those who are not in a position to currently leave their loved ones with a substantial amount of financial security.

One of the greatest burdens left to those who must carry on following such a loss is a large home mortgage. Lenders and insurance companies have begun to offer a solution to this problem with a new insurance product called mortgage protection life insurance.

What is Mortgage Protection Life Insurance?

Mortgage protection life insurance is a program that pays off one's home mortgage balance in the event of their death prior to having satisfied the loan. It does not matter if there is a $50,000 balance, or a $350,000 balance, the amount will not be placed upon the shoulders of its inheritor.

When such a product is purchased, the initial premiums are usually higher than they will be when the mortgage balance is lower. After all, why should a person have to pay a higher price to insure a lower amount?

Why Lenders Love This Program

While getting this kind of life insurance, as opposed to, or in conjunction with, a term or whole life policy. is not bad, it should be noted that the advantage is to the insurer.

Consumer advocate, Clark Howard has noted on his syndicated radio talk show, The Clark Howard Show. that lenders love this program because the average loan in the US housing market only lasts about seven years. This is because at about this time, people either move into another home, hopefully reaping a nice profit, or they refinance for a more desirable rate.

And so, a lender who is offering this kind of insurance, or a separate insurer doing the same, knows that the odds of their average customer will not be passing away within the next seven years, making this product very attractive to their bottom line.

Should Home Owners Get Mortgage Protection Life Insurance?

Despite the information noted above, the answer is not 'no.' It's relative to people's circumstances.

After all, current prime mortgage rates are below 5% for 30-year fixed rates. If a person has this rate and intends on paying his or her home off without refinancing, then this kind of term life insurance program would not be unwise.

However, for those in careers, such as sales and marketing, that hold much promise in travel and relocation, this program would not necessarily be wise.

Mortgage protection life insurance is a fair program for some, and a not-so-fair program for others. Consumers who find themselves in the former should consider getting it while those in the latter should opt for more sound investments for their money.