mortgage protection insurance

  • Insurance that decreases in amount periodically (usually yearly). It may either expire completely after a term of years or remain level thereafter at a reduced amount. The decreases in amount follow the principal-reduction pattern of a monthly reducing mortgage loan, and the insurance is primarily intended to pay off the unpaid balance of such a loan in the event of the death of the insured.

    Internal Revenue Service 1

1Internal Revenue Service, Internal Revenue Manual 4.42.6 Glossary, http://­www.irs.gov/­irm/­part4/­irm_04-042-006.html (last accessed Dec. 22, 2009).