Mortgage Protection Insurance or MPI promises to pay your obligations within specified instances, such as loss of work, disability or death. As with any regular life insurance the insured will be required to pay off monthly premiums that will vary with different circumstances. Depending on the insurance policy, the gains may deduce the expenses of paying off the mortgage. MPI is usually easier to apply and secure as compared to the standard life insurance and it offers ultimate protection and peace of mind. Some major advantages of mortgage protection insurance for property owners have been given below:
Key Advantages of Mortgage Protection
MPI plans offer with the pacification of mind during unexpected events you are not geared up for such as accidents that cause fatal accident or disability onto the policyholder. Without a job, source of income is lost, thus the outstanding balance of your home mortgage may be subjected to legal consequences.
Coverage for whole amount of Mortgage
Most forms of mortgage payment protection insurance plans will shell out the whole amount of your mortgage during death, and not just the balance on your loan. This will offer you with extra income to pay for your family needs. In the case of the policyholder’s death, the family can gain with extra income to help ease the financial lumbers of the critical situation.
MPI Provide Ultimate Protection to Your Family
Without MPI or other forms of life insurance policy backing you up, your family is exposed to the risk of foreclosing the home in case you die or work loss and income. They may also be required to have to sell the property and settle in a much smaller house or rent in an apartment in the meantime. If you have a stay-home partner and kids, they may also be forced to work and leave your kids at home just to support and continue making mortgage payments.
No Medical Test Necessary for Coverage
For MPI you won’t need to undergo medical tests to get coverage for your mortgage. Certainly, this can vary from one company to another. Policyholders can choose to have the benefit amount distributed as a single lump sum or small regular payments within a specific time frame. Some policies provide extra coverage features such as payback of premiums, suspension of premium payments in the event of work loss or unavailability, and the choice to convert the policy into a life insurance plan.
While mortgage protection insurance only goes for a special point of time, some systems may provide the opportunity to convince them into life insurance, snubbing the health conditions of the policy holder. This portrays that the policyholder can have life insurance coverage, succeeding the successful repayment of the mortgage balance.