Mortgage Protection Insurance Quotes & Reviews

What is Mortgage Protection Insurance?

Mortgage protection insurance covers the principal and interest portions of a mortgage payment in the event the policy holder can no longer make mortgage payments. Instead of providing funds that can be used for any expenses, mortgage protection insurance is paid directly to the mortgage lender.

Mortgage protection insurance is similar to life insurance, in that it is paid out after one’s passing. However, the way the insurance proceeds are used differ.

With this type of insurance, the proceeds are sent directly to the mortgage lender, not to the insured homeowner.

The insurance policy doesn’t only cover the death of the homeowner. If a homeowner becomes disabled and cannot work, the insurance may cover the mortgage and interest payments.

Depending on the policy, it may also help cover mortgage payments for job loss or other life events. These differences are referred to as riders (click here to learn more about mortgage protection insurance riders.)

How Does Mortgage Protection Insurance Work?

Once a mortgage protection policy is obtained, the homeowner makes monthly payments to cover the insurance premium.

Instead of the homeowner choosing the beneficiary, the mortgage lender is the default beneficiary. Over time, the amount that may be paid out decreases, since the mortgage decreases as principal payments are made.

If the homeowner dies, the remainder of the mortgage will be paid directly to the lender. If the homeowner suffers a covered injury or another event, the insurance will cover the mortgage payments for a specified amount of time.

Get an MPI Quote

The first step is to get a quote for mortgage protection insurance. Anyone is able to apply for MPI. The monthly premium, however, will depend on the applicant's age, income, mortgage, and other mitigating factors.

Choose an MPI Policy

Policies will differ for many reasons, including price, coverage, riders, and eligibility. Once you find the policy that best suits you, it is best to lock down the policy before any health or income factors change and effect your monthly premium.

Get Peace of Mind

Whether the mortgage protection insurance is to cover yourself or a loved one, rest assured knowing that their ability to pay for their mortgage is protected. Due to the uncertainty of a life event, the ability to afford home payments is crucial.

FAQ

While the cost of mortgage protection insurance can vary for a number of reasons, the monthly premium for MPI can range from $5 per month to $500 per month. Generally speaking, the cost of MPI changes depending on the age of the applicant, the amount of coverage, and the coverage term. MPI policies can range anywhere from $5,000 to $2,000,000 depending on the size of the mortgage being covered.

MPI can be purchased from a mortgage lender, a private insurance company, or through a life insurance provider. Not all insurance companies offer this type of insurance, as it is frequently rolled into a full life insurance policy. MPI providers that we review include AIG, Americo, Athene Annuity, Foresters Financial, Global Atlantic, John Hancock, Mutual of Omaha, Royal Neighbors of America, and Transamerica.

If there is any concern that you or a loved one may become unable to afford their mortgage payments, then a MPI policy can be an affordable reassurance.  Since MPI proceeds are paid directly to the lender, the policy can be effective for ensuring the funds are used properly and for good use. It is important for homebuyers to compare income and assets to any debts they might have to determine if they’ll need this type of coverage. 

PMI, or private mortgage insurance, is similar to MPI in that it insures the ability to pay the mortgage. The main difference is that PMI can be required by the lender. This type of policy is required on most loans if the home buyer uses a down payment of less than the standard 20%. MPI insurance can be canceled at any time, but PMI insurance can only be canceled once the equity in the home reaches 20% or higher.

Mortgage protection insurance is not required to purchase a home. Private mortgage insurance, which is different, may be required by the lender. However, MPI is something that the buyer can choose to purchase if they want to protect their ability to afford mortgage payments.

While mortgage protection insurance and life insurance have many similarities, the major difference is with MPI the policy holder cannot choose the beneficiary. The beneficiary of an MPI policy will always be the mortgage lender. Since the MPI reduces in value as the mortgage is paid off, there will not be any excess funds to be retained by the family. 

Unlike many life insurance policies, MPI policies have guaranteed acceptance. This means applicants will not be turned down for a policy because there is no underwriting process with MPI. The cost can vary based on the homeowner’s health or occupation, but just about anyone can obtain a policy. This means that MPI can be more expensive than life insurance for the same amount of funds.

There are also differences in the rules and regulations. With life insurance, the balance on the policy stays the same over time, while it lowers for an MPI policy as the mortgage is paid off. On top of this, there may be limits on when the policy must be purchased, usually within two years of buying the home. Life insurance, on the other hand, can be purchased at any time.

Since an MPI policy is not required, it can be canceled at any time. Homeowners may prefer to cancel it to save money once they have a significant amount of equity in their home. The term of the MPI is generally for the length of the mortgage, which is often 15 or 30 years. It can also be limited by the homeowner’s age, as older buyers are more likely to experience a covered event compared to younger buyers. 

Mortgage Protection Plan Reviews

AIG

Policy Name: Guaranteed Whole Issue Life Insurance

Policy Cost: Starting at $20/month

Policy Coverage: $5,000 – $25,000

Our Review: AIG, otherwise known as American International Group, was founded in 1919. AIG offers a wide range of insurance products including mortgage protection insurance. Customers can apply for an entire life insurance policy, such as the AIG final expense insurance, or simply get mortgage protection through the Guaranteed Whole Issue Life Insurance.

Americo

Policy Name: Mortgage Protection Life Insurance

Policy Cost: N/A

Policy Coverage: $25,000 – $400,000

Our Review: Founded in 1946, Americo is the insurance subsidiary of the company Americo Financial Life And Annuity Insurance Company, Incorporated. They specialize in term, universal, and whole life insurance products. Americo mortgage protection insurance comes with many benefits, including online applications, instant underwriting, and possible cash back options. Americo also offers MPI living benefit riders such as critical illness, chronic illness, and terminal illness.

Athene Annuity

Policy Name: Mortgage Protection Insurance

Policy Cost: N/A

Policy Coverage: N/A

Our Review: Athene Annuity and Life Company was founded in 1896. They offer annuity and insurance products across all fifty states. Athene Annuity products must be purchased through a licensed insurance provider. 

Foresters Financial

Policy Name: Mortgage Protection Insurance

Policy Cost: Starting at $10/month

Policy Coverage: N/A

Our Review: Foresters Financial has been offering insurance services for over 150 years. Foresters Financial Mortgage Insurance covers mortgage payments in the event of an unexpected death, critical illness, terminal illness, or permanent disability. Their MPI can also be a single or joint with a decreasing term.

Global Atlantic

Policy Name: Global Atlantic Life Insurance

Policy Cost: N/A

Policy Coverage: N/A

Our Review: Global Atlantic offers annuity and life insurance products. As part of their Life Insurance policy, policy holders can protect their mortgage payments in the event of an unforeseen life event. Furthermore, Global Atlantic offers nearly a dozen different riders to supplement their policy, including a terminal illness rider or even a waiver of monthly deductions rider.

John Hancock

Policy Name: John Hancock Vitality Program

Policy Cost: N/A

Policy Coverage: N/A

Our Review: John Hancock offers both term and whole life insurance policies through licensed insurance brokers. They offer mortgage protection insurance through their life insurance offerings that help your surviving family pay your mortgage in the event of an unexpected loss.

Mutual of Omaha

Policy Name: Mutual of Omaha Mortgage Protection Insurance

Policy Cost: N/A

Policy Coverage: Up to $40,000

Our Review: Founded in 1909, Mutual of Omaha offers a wide array of insurance products. As Mutual of Omaha’s mortgage insurance offerings, policy options are for term life insurance, whole life insurance, or guaranteed issue. Anyone who is 85 years old or younger can receive mortgage protection insurance from Mutual of Omaha.

Royal Neighbors of America

Policy Name: Royal Neighbors Whole Life / Term Life

Policy Cost: N/A

Policy Coverage: N/A

Our Review: With four life insurance offerings, Royal Neighbors of America can offer mortgage protection in a number of ways. Royal Neighbors offers whole and term life insurance policies which can protect the mortgage payments of you or a loved one.

Transamerica

Policy Name: Transamerica Mortgage Protection Insurance

Policy Cost: N/A

Policy Coverage: N/A

Our Review: Through its insurance broker partners, Transamerica offers mortgage protection life insurance policies across the United States. 

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