What Is Mortgage Protection Insurance?
Mortgage Protection Insurance (MPI) is designed to protect your family from mortgage payments if the primary breadwinner is unable to provide an income or has passed away.
Most families and couples who own homes require two incomes to afford, maintain, and make payments on their home mortgage. When a loved one dies unexpectedly, the household income is often drastically reduced. When this happens, it leaves only one income-producing spouse or partner to make all the payments. This is where Mortgage Protection saves the day.
The costs vary based on the following:
- The amount of the loan
- The policyholder’s age
- The policyholder’s health
- The policyholder’s occupation
- If the policyholder has a disability
Mortgage Protection Policy
A Mortgage Protection Policy will pay the mortgage balance directly to the lender if an insurer dies. If that happens, the Homeowner’s immediate family, spouse, and children will then own the residence free and clear.
Mortgage Protection policies that pay mortgage payments for an insurer, when there is a job loss or a disability, will only do so for one or two years. In addition, loss of job or disability Mortgage Protection Insurance policies are written differently by companies and they can have a mandatory waiting period before payments are made. Although these policies usually pay for the mortgage’s principal and interest, they do not pay homeowner’s association dues, property taxes, or other fees. Furthermore, it is not unusual for insurers to add additional insurance that will pay for additional coverage.
A Mortgage Protection policy is not for every homeowner. But on the other hand, it is a terrific investment for many. To determine if MPI is a good investment for you, give us a call or fill out the form on the Contact Us page. Our experts are standing by to provide you with the pros, cons, and facts. We are experts in this field and our support is free and without any obligation.