What is Mortgage Protection Insurance also know as MPI? Well, Mortgage protection insurance (MPI) protects homeowners if a health issue arises and they become disabled, or a job loss is lengthy. In the worst-case scenario, this type of coverage can pay off the balance of the mortgage if the borrower dies. MPI can be a safety net in the case of being able to keep your family home in the event of a tragedy. If you die with a mortgage balance and have mortgage protection insurance policy, your insurer pays the remainder of your loan balance directly to the lender and any heirs, such as a spouse or children, won’t have to worry about making future mortgage payments or losing the home. There are some MPI policies that will pay a benefit for a job loss or a disability typically to cover your mortgage payments for up to a year or two.
One benefit of mortgage protection insurance is that it’s typically issued on a “guaranteed acceptance” basis so the likelihood of getting approved for a policy is high. That could be advantageous for people who have health issues and either have to pay high rates for life insurance or cannot obtain a policy. As with any type of insurance, the key is to compare the premiums and benefits of MPI policies against other types of insurance that would serve the same purpose–in light of your particular situation and goals. Always be sure to consult with a professional before making purchasing decisions on the best way to get the best custome plan for you.