
What is mortgage
protection insurance?
MPI is life insurance that is designed to protect your family from burdensome mortgage payments if you are no longer able to provide an income. This sometimes includes limited coverage for disability after an accident.
Mortgage protection insurance works similar to term life insurance. You purchase the policy, pay regular premiums, and your coverage ends at the end of the policy term. Most policy terms are matched to the length of your mortgage.
If you die during the term of your MPI, a death benefit is paid to your beneficiaries. The death benefit amount is tied to your remaining mortgage payments, and the beneficiary is often the lender rather than your family.
- Some MPI policies offer disability coverage.
- MPI works similar to term life insurance and only pays if you die during the policy term.
- MPI terms and benefit amounts are based on your mortgage.