Mortgage Payment Protection Insurance

Mortgage payment protection insurance gives you and your family the reassurance you need to enjoy your home without worrying about what would happen if you couldn't make your payments. If you were to lose your job or become disabled before the mortgage had been paid off, mortgage payment protection insurance, also known as MPPI, would provide benefits to cover your financial obligations for a specified period of time.

Mortgage payment protection insurance would also cover your payments if you were to die unexpectedly before the end of your mortgage contract. Mortgage payment protection insurance is a subcategory of term life coverage, a product that provides financial protection to your loved ones for a specific number of years. A MPPI contract covers the length of your mortgage loan. With MPPI, you and your lender have the peace of mind of knowing that the bank would receive payment for your house, no matter what contingencies may arise.

Benefits of MPPI

Mortgage payment protection insurance offers affordable financial security to home owners who want to ensure that their property remains in the family in the event of a job loss, disability or death. MPPI may be especially useful to home owners who have trouble getting disability insurance because of a high risk job. With affordable house payment protection combined with your term life insurance, you can secure this valuable investment without overextending your family's budget.

Mortgage payment protection insurance may be cheaper than purchasing separate disability and life insurance policies. Construction workers, roofers, and other property owners in high risk professions may find that MPPI is considerably less costly than long term disability plans. Life insurance can also be costly, especially if you smoke or have a health condition that results in higher premiums. If your spouse has an affordable life protection policy to protect your children's financial future, mortgage payment protection can supplement your family's resources without exceeding your coverage needs.

In the event of your early death, the loan for your home would be paid off by your policy in a lump sum, allowing your family to remain in the house without worrying about further financial obligations. For many policy holders, this benefit is the primary reason for choosing this form of loan payment protection insurance. A house represents not only a financial investment, but a source of security, stability and comfort to your spouse and children. With MPPI, that valuable center of security won't be threatened by the common setbacks that a family can experience.

When you purchase a house, your lender may require that you purchase a form of coverage called PMI, or Private Mortgage Insurance, if your home deposit is less than a certain percentage of the property value. PMI is a less comprehensive product that pays off the lender in the event of a foreclosure. Before you purchase PMI, talk with your lender about whether a more inclusive MPPI product could meet your lender's requirements while providing greater security for you and your family.

Drawbacks of MPPI

While MPPI is an affordable form of house payment protection for many families, this type of coverage may not meet all of your needs. Some families prefer a plan that pays off not only the property loan, but provides a death benefit for survivors. A basic term life policy can both pay off your house and provide death benefits to your loved ones; however, a term life policy will not cover your obligations in the event of unemployment or disability.

Mortgage payment protection insurance typically offers decreasing benefits, rather than level benefits. As you pay off your mortgage, the payment that you will receive from the insurance company decreases. The lower the balance you owe for your home, the lower the benefits you can expect to receive. One of the disadvantages to MPPI is that although your benefits decline, your premiums remain the same throughout the term of your contract.

Mortgage payment protection insurance can be an effective way to protect one of your most valuable assets -- your home -- without worrying about meeting the health criteria that a life policy may require. MPPI is an affordable alternative that can increase your family's financial stability at very low prices. Talk with an independent broker or financial specialist about the type of coverage that fits your personal requirements.

Applying for MPPI

Approval for MPPI is generally guaranteed upon your application. Rates may vary from one provider to another based on a company's criteria; however, most individuals qualify with very little trouble. Compare a quote from several providers in your area to find the most reasonably priced product on the market. Once you've found a provider that offers a contract at the price you're looking for, you can often apply online. Take advantage of versatile, affordable mortgage payment protection insurance to secure one of your most valuable investments.

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