Mortgage Protection Assurance
This is a life assurance policy used in connection with a loan or mortgage. At any point in time the sum assured payable on this policy is the outstanding loan balance (capital plus interest). If death occurs before the loan is fully repaid, the loan balance will be paid by this policy.
In essence, this assurance policy has the effect of protecting the mortgaged property from being taken over or auctioned by the lender in order to recoup the loan balance.
This is a policy that guarantees security of ownership and rest of mind to the borrower (mortgagor).