Description

Mortgage protection insurance (MPI) is a specialized life insurance policy designed to ensure your loved ones can remain in their home should the unexpected happen. It provides financial peace of mind by covering your mortgage payments in the event of your death, disability, or in some cases, critical illness.

Key Features:

• Pays Off or Covers Mortgage Payments: If the insured passes away during the policy term, MPI provides a death benefit that goes directly toward paying off the mortgage balance.
• Optional Riders: Many policies offer optional riders, such as disability income protection or critical illness coverage, that help maintain mortgage payments if you’re unable to work due to injury or illness.
• Simplified Underwriting: These policies often feature simplified or no medical exams, making them accessible for individuals who may not qualify for traditional life insurance.
• Term-Based Coverage: Coverage typically matches the duration and balance of your mortgage, such as a 15-, 20-, or 30-year term.

Why It Matters:

Your home is likely your most significant financial asset—and your mortgage, your largest ongoing expense. MPI protects your family’s ability to stay in their home even during difficult life events, eliminating the financial burden of mortgage payments when income is lost.

Who Should Consider It:

• Individuals with limited life insurance coverage
• Anyone with a high mortgage balance and dependents relying on their income

Benefits of Mortgage Protection Insurance:

• Peace of Mind: Know your family won’t lose their home due to an untimely death or disability.
• Easy Qualification: Streamlined application process with little to no medical underwriting.
• Dedicated Use: Unlike traditional life insurance, the benefit goes directly toward paying off the mortgage, ensuring the funds are used for their intended purpose.