Mortgage Protection Insurance: Is It Worth It?

Just like other types of insurance, mortgage protection insurance also protects your finances. If you haven’t heard of it, now’s the perfect time to get yourself acquainted. 
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Here are some of the things you need to know about mortgage protection insurance.

What Mortgage Protection Insurance Is
Like other insurance plans, mortgage protection insurance (MPI) helps protect you and your family from heavy financial burdens. It is insurance that will cover the mortgage expenses if the primary breadwinner is no longer around or can’t provide income.

Generally, MPI works similarly to term life insurance. You purchase a policy and pay the premiums; then, the policy ends with the term. However, some differences make MPI stand out.

• Death Benefit
  Typically, the mortgage provider is the primary beneficiary in MPI. This means that your family or loved ones will not receive the MPI death benefit. Also, the MPI death benefit typically lowers in value after the first five years.
• Term Length
  While term insurance plans have flexible term lengths, MPI term lengths don’t. MPI term lengths are usually fixed. Typically, they are set at 15 or 30 years and might be restricted by your age.
  
  For example, some insurers only offer a 15-year MPI plan to people who are above 45 years old.

Is MPI worth it?
Generally, all insurance types are worth getting. However, there are other factors you have to consider, including your need for it.

Here are some things that could help you determine if MPI is worth purchasing.

• If you have health issues that don’t allow you to purchase life insurance at an affordable rate, MPI may help. This is especially helpful if you’re worried about your loved ones not being able to cover mortgage payments. However, keep in mind that you still have to look around to find the best deal for you.
• MPI focuses on one of the biggest debts a person can incur and allot coverage for it. In addition, you wouldn’t have to worry about not having enough coverage because it’s equivalent to your mortgage balance.

Conclusion
Mortgage protection insurance doesn’t only protect your loved ones but your property as well. Although you may think you don’t need it, purchasing a mortgage protection insurance policy will be beneficial in the long run.

At UG Insurance Brokerage Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (718) 848-7777 or Click Here to request a free quote.