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  • S T Azari

Understanding the Importance of Mortgage Protection Insurance: What You Need to Know

  • Protects your loved ones:  If you die unexpectedly, MPI ensures your remaining mortgage balance is paid off. This prevents your family from inheriting a financial burden and potentially losing your home.

  • Peace of mind:  Knowing your family is protected financially in case of your death can provide peace of mind for you and your loved ones.

  • Doesn't require medical exam (often): Unlike some life insurance policies, MPI often doesn't require a medical exam to qualify, making it easier to obtain coverage, especially for those with health conditions.

  • Convenience:  MPI payout typically goes directly to the lender to pay off the remaining mortgage balance, simplifying the process for your heirs.

However, it's not a one-size-fits-all solution. Consider these factors before deciding:

  • Cost: MPI adds an extra monthly expense to your mortgage payment.

  • Alternatives: You might already have life insurance that could cover the mortgage balance.

  • Temporary need:  If your mortgage balance is expected to decrease significantly over time, MPI might not be necessary in the long run.

Ultimately, weigh the cost of MPI against the potential financial security it offers your family.

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