Buying a home is likely one of the most significant investments you'll make in your lifetime. As such, you want to ensure that your family is protected if something happens to you. One way to do this is by purchasing mortgage protection insurance (MPI). But do you need to cover your full mortgage amount to protect your family? Let's unpack this question and take a closer look at MPI.
What is Mortgage Protection Insurance?
MPI is a type of insurance policy that pays off your mortgage balance in the event of your death, disability, or job loss. MPI is often sold as a package with life insurance, disability insurance, and unemployment insurance.
Do You Need to Cover Your Full Mortgage Amount?
The answer to this question depends on your personal situation. In general, MPI is designed to cover your mortgage payments if you're unable to make them due to an unexpected event. The amount of MPI coverage you need will depend on your mortgage balance, your monthly mortgage payment, and the ability of you or your to make those payments if something happens to you.
If you have enough savings or other sources of income to cover your mortgage payments if something happens to you, you may not need to cover your full mortgage amount with MPI. On the other hand, if your family relies on your income to make ends meet, you may want to consider covering your full mortgage amount with MPI.
It's important to note that MPI will depend on your age, health, and the amount of coverage you need. You'll want to shop around and compare policies from different insurance companies to find the best policy for your needs or work with an Independent Life Insurance Broker, like me, that has access to a variety of carriers and assist in finding the best carrier for you.
MPI can provide peace of mind for homeowners who want to ensure that their family is protected if something happens to them. Whether or not you need to cover your full mortgage amount with MPI will depend on your personal situation. If you have enough savings or other sources of income to cover your mortgage payments, you may not need to cover your full mortgage amount with MPI. However, if your family relies on your income to make ends meet, covering your full mortgage amount with MPI may be the best option for you. Be sure to compare policies from different insurance companies to find the best policy for your needs.
Looking forward for the opportunity to serve you and your family.
Ivonne Cabrera
Independent Life Insurance Broker
Great read!