Compare Mortgage Protection Insurance Quotes
Our free mortgage protection insurance calculator can help you find the lowest MPI premiums. Enter basic information about yourself and your mortgage, and we’ll compare rates from different insurers. We’ll also show you how much coverage you need to protect your mortgage. So get started today and give yourself and your family the peace of mind that comes with knowing you’re protected.
- “x” Year Term = Term life insurance (cheapest coverage)
- To age “x” = Universal life insurance (moderately expensive)
- Whole Life = Whole life insurance (most expensive)
What is Mortgage Protection Insurance?
It is not the same as PMI (Private Mortgage Insurance). PMI protects the lender if you default, but MPI protects your home from being lost due to your death or disability.
Mortgage Protection Insurance (MPI) is a type of life insurance specifically designed to pay off your mortgage in the event of your death. Unlike standard term life insurance, MPI’s death benefit decreases over time as your mortgage balance decreases. This ensures that your family is not burdened with mortgage payments in the event of the unexpected.
How Much Does Mortgage Protection Insurance Cost?
Monthly Premiums
- $250,000 policy: $50–$150/month depending on your age, health, and whether it includes disability coverage.
- Rates increase with age and smoking status.
- Coverage usually ends when the mortgage is paid off.
Key Pricing Factors
Type of underwriting (simplified vs. fully underwritten)
Loan size and length
Health and age
Optional riders (disability, unemployment)
Types of Mortgage Protection Insurance
| Type | Description | Death Benefit | Additional Coverage | Paid To |
|---|---|---|---|---|
| Mortgage Life Insurance | Pays off the remaining mortgage if you die. | Declines with your mortgage. | May offer accidental death benefit. | Lender |
| MPI with Disability/Unemployment | Helps cover payments during illness or job loss. | None | A traditional term life policy you control. | Lender |
| Level-Term Life Insurance | Refund premiums if you outlive the policy. | Fixed payout to your family. | Optional riders. | Beneficiaries |
| Return of Premium MPI | Refunds premiums if you outlive the policy. | Declining payout. | Premium refund at term end. | Lender or You |
Benefits and Drawbacks of MPI
✅ Pros:
- No medical exam needed (in most cases)
- Pays the lender directly, ensuring the home is paid off
- Some policies cover disability and job loss
- Return of premium options can refund your money if you don’t use it
❌ Cons:
- Only pays the lender—your family receives nothing
- Death benefit decreases with your mortgage
- More expensive than term life for equal coverage
- No flexibility in how the benefit is used
Who Needs Mortgage Protection Insurance?
Who Should Consider It?
- People denied traditional term life insurance due to health
- Homeowners who don’t want a medical exam
- Families who rely on one income
- Seniors with simplified underwriting needs
Who Doesn’t Need It?
- Healthy individuals who can get term life insurance
- People who already own sufficient life and disability insurance
- Those seeking flexibility or higher death benefits
- Anyone who doesn’t want a declining benefit paid directly to a lender
Top Alternatives to MPI
1. Term Life Insurance
A level-term policy (20 or 30 years) allows your family to pay off the mortgage or use the funds as needed.
- ✅ Lower premiums than MPI
- ✅ Payout goes to your family
- ✅ More control over benefits
- ❌ May require medical underwriting
2. Permanent Life Insurance with Living Benefits
Covers you for life, builds cash value, and offers long-term care or chronic illness riders.
- ✅ Lifetime coverage
- ✅ Access to funds while alive
- ❌ Higher premiums
3. Disability Insurance
Provides monthly income if you’re unable to work due to illness or injury—key for making mortgage payments.
- ✅ Protects your income
- ✅ Helps avoid default
- ❌ May require detailed income verification
4. Fixed Indexed Annuities (FIAs) With Guaranteed Income Riders
These provide a predictable monthly income in retirement and can be structured to match your mortgage payments.
- ✅ No market risk
- ✅ Income continues even if you live past the mortgage term
- ✅ Can be funded from IRAs, 401(k)s, or savings
- ❌ Income begins only after deferral
MPI vs. Term Life Insurance: Which Is Better?
| Feature | MPI | Term Life Insurance |
|---|---|---|
| Death Benefit | Level throughout the term | Lower for the same benefit |
| Paid To | Lender | Family |
| Medical Exam | Often not required | Usually required |
| Cost | Higher per $1,000 | Lower for same benefit |
| Flexibility | Low | High |
| Riders | Disability, job loss | Living benefits, LTC, waiver of premium |
Final Thoughts: Is MPI Right for You?
MPI provides peace of mind—but often at a cost and with limited flexibility. If your health prevents you from buying term life insurance, MPI can serve as a fallback. However, if you’re healthy and want control, term life insurance or annuities with income guarantees typically offer more value and family protection.
Contact The Annuity Expert and have our brokers compare mortgage protection insurance, term life, disability, and annuity options on your behalf—all tailored to your mortgage and income needs.
Call now or request your free quote to protect your home and your family’s future—before it’s too late.
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Questions From Our Readers
What types of events are typically covered by mortgage protection insurance?
Mortgage protection insurance typically covers events that can impact a homeowner’s ability to pay their mortgage such as disability, unemployment, or death.
What are the benefits of mortgage protection insurance?
The benefits of mortgage protection insurance include peace of mind, financial security, and protection for the borrower’s loved ones.
How do I know if I have mortgage protection insurance?
Review your policy documents or contact your insurance provider to determine if you have mortgage protection insurance. They can provide information on the coverage and benefits that you have.
How much is mortgage life insurance per month?
On average, a healthy person can expect to pay around $50 to $100 per month for mortgage life insurance. However, it’s recommended to obtain a personalized mortgage life insurance quote to get an accurate estimate based on individual circumstances.
Does homeowners’ insurance cover the death of the owner?
Homeowners’ insurance typically does not cover the owner’s death. It primarily provides coverage for property damage and liability claims. However, it may be prudent for homeowners to consider life insurance to ensure their loved ones are financially protected in the event of their death.
Does mortgage insurance cover the death of a spouse?
Mortgage insurance typically covers the death of a spouse, ensuring that the remaining partner can continue making mortgage payments. In the event of a spouse’s death, the insurance policy provides financial assistance, either paying off the mortgage entirely or covering a portion of the remaining balance. It provides peace of mind during challenging times.
What type of insurance pays off a mortgage?
Mortgage protection life insurance or any life policy sized to the balance. For example, a $300,000 term policy retires a $300,000 mortgage at death.