US: A life or health insurance policy intended to pay off the balance of a mortgage upon death or to meet payments on the mortgage in case of disability. Also known as “mortgage redemption insurance.”
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Life insurance that pays the balance of a mortgage if the mortgagor (insured) dies.
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To cover default in repayment of loans for housing. This scheme is expected to accelerate housing finance activity by improving liquidity of institutions financing housing and by reducing the quantum of initial down payments by the borrowers.
Insurance Encyclopedia
Mortgage insurance (Health Insurance/Life Insurance)
A policy that helps a mortgage holder in the case of the insured’s death or disability. This type of policy will pay the balance of a mortgage in the event of the insured’s death, or will help to make the payments on a mortgage if the insured becomes dead or disabled.
Mortgage payment protection insurance (MPPI)
Meets mortgage payments when the borrower suffers accidental injury, sickness or unemployment. No benefit is payable for the first two months. The policy may provide lump sum benefits for accidental death or critical illnesses.
Mortgage protection policy
a decreasing term assurance designed to pay off the anticipated outstanding balance of a repayment mortgage.
Mortgage redemption insurance (Health Insurance/Life Insurance)
This term can sometimes refer to mortgage insurance. It can also refer to a term policy, the value of which reduces monthly, which is used as mortgage insurance.
Mortgagee
The creditor to whom a mortgage is given and who lends money on the security of the value of the property mortgaged.
Mortgagee (Property Insurance)
The person or institution who lends money against the value of a property and receives a mortgage in return.
Mortgagee Clause
Property Insurance clause which authorizes the Insurer to pay a loss to the mortgagee and/or insured, as their interests may appear at the time of loss. This clause also may specify other rights and duties of the mortgagor and mortgagee regarding the Insurance. See Also: “Agreed Bank Clause” (Agreed mortgagee clause.)
Mortgagee Endorsement
An endorsement to an insurance policy covering the policyholder’s mortgaged property to provide that, in the event of the insolvency of the insurance company, the reinsurer shall pay directly to the mortgagee and/or the policyholder the amount of loss that would have been recovered from the reinsurer by the insurance company. The endorsement may provide that the reinsurer will pay the full loss amount in accordance with the insurance protection afforded by the insurance company. Similar in concept to the Cut-Through Endorsement.
Mortgagee’s Interest Insurance (MII) for Marine Hull
It covers the bank/lender’s interest in the mortgaged vessel. The cover is secondary to the vessel’s actual primary insurance, such as Hull and Machinery, Hull Interest, War and P&I Insurance. A claim is valid only when the primary insurance cover does not respond. It is to be noted that MII is a mirror of the primary cover and does not cover anything outside that scope of cover. MII insurance covers loss resulting from loss of or damage to or liability of the Mortgaged Vessel which would prima facie be covered by the Owner’s Policies and Club Entries, but in respect of which there is subsequent Non-Payment by any of the owner’s underwriters.