I sell both mortgage protection and term life insurance. So when a new homeowner asks me 'is MPI worth it?', I don't have a horse in the race — I just want them in the right product. Here's the honest answer.
It depends on three things
- Your health (and whether you can pass a medical exam)
- Whether your spouse or partner has income
- How much non-mortgage debt and other expenses your family would face if you died
Free: MPI vs Term Life Guide (PDF)
A 5-page side-by-side comparison written by a licensed agent.
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The case for MPI
MPI is almost always issued without a medical exam. If you've been declined for life insurance before, or you have a condition that makes traditional underwriting difficult, MPI may be the only realistic way to make sure your mortgage gets paid off. That alone is worth a lot.
The case against MPI
If you're healthy, a 30-year level term policy with the same death benefit usually costs 30–60% less per month. And the payout goes to your family — not the bank — so they can decide whether to pay the loan off, refinance, or invest the proceeds.
What I tell my clients
Start with term life. If you can qualify, you'll get more flexibility for less money. Only fall back to MPI if your health makes traditional coverage too expensive or impossible.