Mortgage Protection Insurance Cost and Benefits

Description

1. Pays Off Mortgage in Case of Death

If you die during the policy term, MPI will pay off your remaining mortgage balance directly to the lender. This ensures your family won’t have to worry about losing the home.

2. May Cover Disability or Job Loss

Some policies offer optional riders that provide coverage if you become disabled or involuntarily unemployed.

In such cases, the insurance may make monthly payments for a certain time (usually 6–12 months for job loss, longer for disability).

3. No Medical Exam Required

Often easier to qualify for than traditional life insurance—especially good for those with health conditions.

4. Peace of Mind

Offers security knowing your family won’t be burdened by mortgage payments if you’re unable to pay.

🔹 Mortgage Protection Insurance Costs

🏷️ Cost Range

$50 to $150+ per month (varies widely based on factors below).

💰 Cost Factors

Factor	Effect on Cost
Mortgage amount	Higher loan = higher premiums
Age	Older = higher premiums
Health	Smokers or those with health issues = higher costs
Term length	Longer coverage = more expensive
Additional coverage	Disability or job loss riders = extra cost
Insurance provider	Rates vary by company

🔹 Pros vs. Cons Summary

Pros	Cons
Easy to get approval	Generally more expensive than term life insurance
Directly pays off mortgage	Benefits go to lender, not your family
May include disability/job loss protection	Decreasing benefit (as mortgage is paid down)
Good option if uninsurable through life policy	Not flexible—only covers mortgage

🔹 Alternatives to Consider

✅ Term Life Insurance

Usually cheaper and provides a fixed benefit that your family can use however they need (not just for the mortgage).

More flexible and customizable.

✅ When MPI Might Be a Good Fit

• You don’t qualify for traditional life insurance due to health or age.
• You want extra peace of mind and quick approval.
• Your mortgage is your largest financial obligation and you want to ensure its covered.