If you have a mortgage, and you want to make sure that it is paid off in the event of your death, you will need to get mortgage protection insurance. This is similar to a life insurance policy, but it is specifically for the purpose of paying off the mortgage. As you pay on your mortgage, the total amount that you owe is going to depreciate over time. That is because you are paying off the interest, and also the principal amount, and these MPI policies will depreciate along with your mortgage. Therefore, if you ever do need to use it, it will cover the full amount of the mortgage that is owed. Here is the main benefit of using MPI insurance if you have a mortgage on your home.
The primary benefit of having this type of insurance is for the protection of your family. If you are the breadwinner of the family, and if you die, they will no longer have this consistent income. They will still have to make the mortgage payment, but if you have MPI insurance, it will be paid off shortly after your death. This will eliminate the necessity of making that payment because of the mortgage protection insurance paying off the total amount.
Finding this insurance is very easy to do. You can speak with your current insurance broker. They will show you multiple policies, one of which will be appealing. You will choose one based upon the amount of the coverage, how much it will cost per month, and how it will depreciate over time. You may also want to get multiple quotes from different businesses that also offer MPI insurance. You may discover that one of them is far less expensive. As long as they have a track record for paying off mortgages, then you can feel confident about getting the one that will cost you less on a monthly basis
It should only take about an hour to get your policy. If you set an appointment with your insurance broker, they can fill out the paperwork, and have you sign it, within the hour. The last thing that you will do is write a check, or make a payment using a debit or credit card, and that will instantly activate the policy. If you were to subsequently die outside of their office, the policy would be activated and would pay off the mortgage in full. It really is that easy to get this insurance which will provide your family with ample protection in the event of your death. Just make sure that the policy is going to depreciate properly. Some of them might depreciate to quickly, and they may end up having to pay thousands of dollars to fully pay off the mortgage. As long as they can show you a calculation of how it will be depreciating, compared with the depreciation of your mortgage, you will know that the entire mortgage will be paid off.
Even if you do have life insurance, that money is usually designated for providing your family with a replacement for your income. That is why getting MPI insurance is a necessity as well. Once they have paid the mortgage off, and they have the other life insurance policy, they will not have to worry about cash flow at all. That will give them time to recover from losing you and find additional jobs of necessary. If you want to protect your family in the event of your death, always have a life insurance policy and MPI insurance that will pay off the mortgage.