Home mortgage protection, or mortgage protection insurance (MPI), is not to be confused with private mortgage insurance (PMI). While both insurance policies offer protection to lenders, MPI offers equal, if not greater, protection to you, the policyholder. PMI offers no assurances; it only comes into play if you default on your mortgage, thus protecting your lender. MPI, in contrast, protects your investment.
MPI is more like life insurance. You select the length of coverage and the death benefit amount based on the length and amount of your mortgage. With some MPI policies, you can choose a return of premium term. Doing so allows you to protect your home and your loved ones without worrying that you’re throwing away your money. If you require the mortgage protection, you have it. If you don’t need it, you will receive a return of the base premiums at the end of the policy’s term.
Choosing whether to purchase MPI is simple then. If you wish to protect your investment in a house or other property, you should purchase MPI. If you desire to protect your loved ones, you should buy MPI. If you’re interested in purchasing MPI or want to learn more about MPI policies, contact Flor & Associates Insurance Agency.