A form of decreasing term insurance that covers the life of a person taking out a mortgage. Death benefits provide for payment of the outstanding balance of the loan. Coverage is in decreasing term insurance, so the amount of coverage decreases as the debt decreases. A variant, mortgage unemployment insurance pays the mortgage of a policyholder who becomes involuntarily unemployed. (See Term insurance )

"Mortgage Insurance" In Context

"Those businesses have seen substantial losses since the U.S. housing crash. Old Republic's mortgage insurance business has continued to deteriorate since it was forced to stop selling new coverage in August. The status, known as runoff ..."