Your home is a substantial financial commitment – one that you will be committing to for a good part of your adult life.  If you die before your mortgage is paid off or become unable to work, it’s good to plan how your family will make those payments.

That’s where mortgage protection insurance comes in.

Mortgage protection insurance (MPI) is a type of life insurance designed to pay off your remaining mortgage when you die or become disabled.  This is a way to prevent going into foreclosure and take some financial pressure off your family.

MPI Pays For Your Mortgage After Death Or Disabilitymonthly mortgage payments

The beneficiary of your MPI is not your family—instead, it is your mortgage company.  MPI can even cover mortgage payments for a limited time if you lose your job or become disabled.  Many homeowners have opted for MPI, and their families have benefited.  Most MPI policies have guaranteed acceptance, which is excellent news for those with health issues struggling to get a life insurance policy.

How Much Does MPI Cost?

The costs of the monthly premium you will have to pay each month depends on your age, health, and the amount of the mortgage.  If you want insurance to cover things for your family, like bills and funerary costs, you will have to look at additional coverage.

If you want to provide your family with financial protection after you die, a life insurance policy may make more sense for you.  That way, your beneficiaries can allocate the money as they see fit.  In some cases, life insurance may have lower premiums.

Before deciding on any insurance, carefully research your options and speak with a trusted financial advisor.

Do You Need It?

While mortgage protection insurance isn’t required, it can be prudent to have, especially if you are older and want to ensure some financial security for your family.  It’s also important to remember that MPI is not the same as private mortgage insurance (PMI), which is required to protect the lender should you foreclose.

If you want MPI, you may have to research who offers it in your area.  Understand how much it will cost and what it does and doesn’t cover before committing.  This will help you make an informed decision about what’s best for you and your family.

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Contact Eric Merchant At 314.541.1218