What’s the difference between mortgage protection and life insurance?

Mortgage Protection is a special form of life insurance used when somebody is taking out a mortgage and specifically designed to pay off the balance outstanding on your mortgage.

The difference between a Mortgage Protection policy and typical level term life insurance is that the amount insured does not reduce on a level term life insurance policy.

For this reason, you will find that level term life insurance is more expensive as the cover amount does not reduce during the policy term.