The cost of mortgage protection insurance can vary for many reasons. To get an instant estimate of how much your policy could cost, fill out our mortgage protection insurance calculator in the side bar (bottom of page on mobile) or click here to get an instant quote from dozens of companies.
How Much Does Mortgage Protection Insurance Cost?
The more likely you are to need a payout, the more expensive your insurance premiums will be. Factors that increase this likelihood are advanced age and health issues, to name a few.
The monthly insurance premium for a mortgage protection policy can range from $5 per month to $500 per month, depending on term length, policy amount, and health factors. The average cost of a $250,000 MPI policy is about $50 per month.
What Are The Monthly Premiums For Mortgage Protection Life Insurance?
What Factors into the Cost of MPI?
When a mortgage protection insurance agent calculates your policy with an actuary, thousands of factors will be applied. Here are a few of the most important factors:
The most obvious factor in the cost of mortgage protection insurance is the size of the policy. The more insurance you need, then the higher the monthly premium will be.
Generally speaking, the cost of MPI changes depending on the age of the applicant, the amount of coverage, and the coverage term. The older you are, the more expensive your MPI policy will be.
If the policy holder is in poor health, suffers from any diseases, or works in a dangerous field of employment then the monthly premium will increase.
The applicant’s sex affects the cost of MPI. Men generally pay a higher monthly premium than women.
Where your home is located plays a big role in the cost of mortgage protection insurance. For example, homes located near waterways, flood zones, or tornado zones will be more expensive to insure.
Smokers and people who use nicotine will be expected to pay more for mortgage life insurance.
If you determine that you need an add-on to your policy such as an insurance rider, your costs will increase as well.
Riders such as accidental death, unemployment, disability, or bankruptcy will provide extra protections, but ultimately increase your monthly premium as well.
How to Use the Mortgage Protection Insurance Calculator
Given the many factors that impact the cost of mortgage insurance, using our calculator is the easiest way to check your rate. Input some basic information and how much coverage you need to get an idea how much MPI will cost you.
When using the mortgage life insurance calculator, remember that you only need as much coverage as the remaining balance on your mortgage.