Alternatives to Mortgage Protection Insurance (MPI)
Alternatives to Purchasing Mortgage Protection Insurance (MPI) are term life and whole life insurance policies. While Mortgage Protection Insurance policies pay off the mortgage if the insurer passes away, so can term and whole life insurance policies.
The death benefit maximum with Purchasing Mortgage Protection Insurance is the initial mortgage amount, but many companies will allow 20% more than the mortgage amount.
The advantage of Mortgage Protection Insurance is that it may be cheaper than life insurance and you may not be required to undergo a medical exam.
The following are the pros and cons to choosing mortgage insurance, term life, or whole life
|Mortgage insurance||Guarantees the mortgage is paid upon insurer’s death. Insurer can pay monthly premiums when the insured becomes disabled or is out of work. Usually no medical exam is required.||Payout goes to directly to the mortgage company|
|Term life insurance||A larger death benefit can be obtained that will cover the mortgage.||A Medical Exam is required & coverage is for only a specific time period.|
|Whole life insurance||More flexible than Mortgage Insurance because it can be used for more than paying off the mortgage.||More expensive and a Medical Exam is required.|
When purchasing a residence, the mortgage commitment is usually for 25 to 30 years. To take on that debt and responsibility, it makes sense to take precautions to ensure that a foreclosure never happens. The solution is Purchasing Mortgage Protection Insurance (MPI), which protects families when the insurer suffers from a long term job loss due to health issues, or passes away.
When deciding on which insurance policy to purchase, there will be lots of questions. So where do you find the answers. We hope that you will contact us for the TRUTH. Nothing but the facts here and our experts can definitely guide you and provide professional counsel. Why not call us? There is no cost and definitely no obligation.