If you are paying for a mortgage, then you should have received deals for mortgage protection insurance (MPI). It works by covering the mortgage when losing your job, when someone dies or become disabled. Mortgage Protection Insurance is also an option for seniors with limited or no life insurance.

Some people are hesitant to add the insurance because of not knowing the benefits. They are thinking this is another way for insurance companies to get extra money. Making the choice to get mortgage protection depends on several factors, such as financial, what you want to happen after death and health.

Another name for mortgage protection insurance is mortgage payment protection insurance (MPPI). The price for coverage depends on the policyholder’s age, health and amount of mortgage. The cost is also different for policyholders who choose disability MPI and depends on the occupation. Senior citizens should enjoy their retirement instead of worrying about finances. Mortgage protection insurance is one of many options for the elderly who needs assistance with burial expenses.

Private mortgage insurance (PMI) and MPI are two different types of insurance. Many customers get the two mixed up, but they are not the same. Home buyers are required by law to get private mortgage insurance when putting less than 20 percent down on a house for purchase. The insurance does not have anything to do with death, job loss or disability. It also pays the bank when the homeowner forecloses on the loan.

Many seniors do not want to leave their children and heirs the burden of paying off their home or other bills. If seniors choose to get MPI, then mortgage is paid off when the person dies. The insurance company sends a check to the mortgage company, which leaves the heirs with a home that is paid in full.

The payments are also paid to the mortgage company for a certain period when paying out for job loss or disability. It can take a waiting period before the payments kick in and they are usually paid directly to the company for about two years. Job-loss and disability policies usually pay only the interest and principal on a loan. However, homeowners can look for policies that cover other loan-related expenses, such as homeowners’ association fees.

One advantage of choosing MPI is that applicants are approved on a guaranteed acceptance basis. Applicants are asked few questions that will prevent them for getting approved for the coverage. This is valuable to people who are insurable at a high price because of health issues or uninsurable. It is also an option for people who work in high-risk occupations like roofers who have a hard time getting disability insurance.

Funeral insurance for the elderly allows for taking care of funeral expenses before death or getting gravely ill. It is also known as pre-need policies. The policies are offered based on monetary needs or allows for planning the entire service in advance. Seniors are not that particular about the features they just want to feel comfortable knowing that their families do not have to pay for burial expenses.

The three types of funeral insurance are cash payout plan, pre-payment plan and an insurance program plan. The cash payout plan is when the senior purchase the plan for a certain cash amount and the family gets the money with the person dies. A pre-payment plan consists of purchasing the items at the current cost for later use. The insurance program plan works by paying into a plan and picking out items, but not pre-paying for the items. The family will pay the difference between the price at the time of death and current price.

Here is a straight-forward video explaining Mortgage Protection Insurance in more detail:


  1. I’m not a big fan of mortgage protection insurance. It’s an expensive policy to protect one (albeit a major) bill.

    Most people would do better getting life and disability insurance that covers more than just their mortgage. It’s more cost effective for the coverage you get.

    That said, when you buy your first house, it’s the mortgage that panics you. So I can see the appeal to this coverage. But it’s wise to look into it carefully before you sign on.

    • @Pamela – You make some good points. I think it really depends on the couple – if they are a one income family or are completely dependent on both incomes to support the mortgage, it might be a good investment. But each couple/person needs to do their due diligence and really investigate what’s best for them.

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