What is Mortgage Protection Insurance?
Mortgage Protection Insurance (MPI) is a type of life insurance designed to help pay off your mortgage if you die, become disabled, or in some cases, face a critical illness. Its primary purpose is to ensure that your family or beneficiaries won’t have to worry about mortgage payments if you're unable to make them due to unforeseen circumstances.
How It Works:
Death Benefit: If you pass away, the policy pays a lump sum to your beneficiaries, which can be used to pay off your mortgage.
Disability Benefit: Some MPI policies provide monthly payments to cover your mortgage if you become disabled and are unable to work.
Critical Illness: Some policies offer coverage in case you're diagnosed with a serious illness, such as cancer or a heart attack, and can't work or pay the mortgage.
Key Features:
Coverage Tied to Mortgage: The amount of coverage is often directly tied to your mortgage balance, so it decreases over time as you pay down the mortgage.
Simplified Application: Many MPI policies don’t require a medical exam, making it easier to qualify.
Policy Term: Typically, the policy lasts for the duration of your mortgage term (e.g., 15 or 30 years).
How does Mortgage Protection Insurance work?
Pros and Cons of Mortgage Protection Insurance?
Pros of MPI:
✔ Peace of mind: Ensures your family doesn’t lose the home if something happens to you.
✔ Flexible payouts: Some plans pay out in a lump sum, while others may offer monthly payouts.
✔ No medical exam: Some policies don’t require a medical exam for approval.
Cons of MPI:
❌ Limited coverage: It only covers your mortgage and not other living expenses or debts.
❌ Decreasing coverage: As you pay down the mortgage, your coverage decreases, so the death benefit is smaller over time.
❌ Premiums: MPI premiums can be higher than a standard term life insurance policy with the same death benefit.
License Verification
National Producer #: 18780820
What Are You Waiting For? Let’s Get Protection In Place!