Core Insights - Mortgage protection insurance (MPI) is a type of life insurance designed specifically for homeowners, ensuring that the mortgage balance is paid off in the event of the policyholder's death [2][14] - MPI policies typically require the policyholder to pay premiums for a term that often matches the mortgage repayment schedule, with the death benefit decreasing over time as the mortgage is paid down [4][5] - The cost of MPI premiums generally ranges from $20 to $100 per month, which can be higher than traditional life insurance due to guaranteed coverage [10][16] Summary by Sections What is Mortgage Protection Insurance? - MPI, also known as mortgage protection life insurance, is specifically for homeowners and pays off the mortgage balance directly to the lender upon the policyholder's death [2][8] How Mortgage Protection Insurance Works - MPI functions similarly to term life insurance, requiring premium payments for a specific term, and pays the remaining mortgage balance if the policyholder dies during that term [4][5] - Unlike traditional term life insurance, the death benefit of MPI decreases over time as the mortgage is paid off, while premiums typically remain constant [5] Cost of Mortgage Protection Insurance - Premiums for MPI vary based on the mortgage size, term, and the policyholder's age and life circumstances, generally falling between $20 and $100 per month [10][16] Pros and Cons of MPI - MPI can be beneficial for older homeowners or those with preexisting health conditions who may face higher premiums for traditional life insurance, ensuring their family can retain the home if they pass away [12][13] - However, MPI may be unnecessary for those who already have life insurance that covers mortgage payments, leading to potential duplicate coverage [15]