Keep Your House a Home, No Matter What
Mortgage Protection Insurance
Ensure your family's biggest asset is protected. This coverage is designed to pay off your mortgage if the unexpected happens.
What is Mortgage Protection Insurance and How Does It Work?
Mortgage Protection Insurance (MPI) is a specific type of life insurance designed to do one job: pay off the remaining balance of your mortgage if you pass away.
How it typically works:
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You purchase a policy for an amount that matches your mortgage loan.
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The policy is designed so the death benefit decreases over time, mirroring your shrinking mortgage balance as you make payments.
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If you pass away during the policy's term, the benefit is paid out—often directly to the mortgage lender—to clear the debt.
This ensures your family can stay in their home, free and clear, without the burden of monthly mortgage payments.
Key Benefits & Potential Drawbacks
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Benefits:
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✅ Peace of Mind: A guaranteed way to ensure your home is paid for and secured for your family.
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✅ Earmarked Funds: The money is designated specifically for the mortgage, so you know that one massive expense is handled.
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✅ Easier Underwriting: Often easier to qualify for than traditional term insurance, sometimes with no medical exam required.
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Drawbacks:
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❌ Decreasing Benefit: While your premiums stay the same, your coverage amount goes down over time.
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❌ Less Flexibility: The beneficiary is often the lender, not your family. This means your family doesn't get cash to use for other urgent needs.
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❌ Can Be More Expensive: A traditional term life policy can often provide a larger, level death benefit for a lower cost, which your family could then use to pay off the mortgage or for anything else.
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Who is Mortgage Protection Best For?
MPI can be a good choice for:
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Homeowners with Health Issues: Who may have difficulty qualifying for a traditional term life policy.
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Those Wanting a "Set-it-and-Forget-it" Solution: For people who want the absolute certainty that the mortgage will be paid off, without relying on beneficiaries to manage the money.
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Couples Who Want a Dedicated Policy: To specifically ensure their shared home is secure.