- Guaranteed acceptance
One of the advantages of buying mortgage protection insurance is convenience.
Anyone can buy a policy; typically, no medical exam is required in the underwriting process. This is especially helpful for someone with a pre-existing condition or an illness that either disqualifies them from other types of life insurance or pushes their life insurance rates up to an unaffordable level.
Since life insurance rates are primarily determined by the applicant’s health, skipping underwriting could result in higher insurance premiums. Still, it can be worthwhile if poor health would raise the premiums of a standard term life insurance policy even more.
- Provides certainty
Another benefit of MPI is that it takes the guesswork out of paying off a mortgage.
Receiving a lump sum of money from a traditional term policy can be overwhelming. MPI is matched up to the mortgage balance, and the money will go only toward that. Your family will never have to worry about having a place to live.
- Good supplement to life insurance coverage
Mortgage protection insurance can also be an excellent supplement to life insurance coverage.
If your mortgage is paid off with money from a mortgage life policy, then your family could use all the benefits from your term or whole life insurance policy for bills and other expenses.