Mortgage Protection Insurance: Keep Your Family in Their Home

For most families, the home is the most valuable asset they own — and the mortgage is their largest monthly expense. Mortgage protection insurance (MPI) is a life insurance policy specifically designed to pay off your remaining mortgage balance if you pass away unexpectedly.

Mortgage protection insurance is a form of term life insurance. You choose a coverage amount equal to (or close to) your outstanding mortgage balance, and a term that matches your loan's remaining length.

If you die during the term, the policy pays a death benefit. Your family can use it to pay off the mortgage entirely — keeping the home without the burden of monthly payments.

Both products can accomplish the same goal, but there are key differences:

One important note: unlike mortgage life insurance sold by lenders (which pays the bank directly), mortgage protection insurance pays your family — giving them the flexibility to pay off the mortgage, cover other expenses, or both.

Mortgage protection insurance is worth considering if:

• You recently bought a home and have a large outstanding balance
• Your spouse or partner couldn't afford the mortgage on their income alone
• You have dependents who rely on your income
• You have health conditions that make traditional life insurance harder to qualify for

Many mortgage protection policies offer a return of premium (ROP) rider. If you outlive the term, you get back every premium you paid — essentially making the coverage free if you don't use it. Premiums are higher with this option, but it's a compelling feature for people who want protection without feeling like they're "wasting" money.

The right mortgage protection policy depends on your loan balance, remaining term, health, and budget. Our advisors can compare options from multiple carriers and find a policy that fits — reach out today for a no-obligation quote.