When you think of your financial portfolio, you probably picture savings accounts, investments, or retirement funds. But there’s another critical piece of the puzzle: your insurance portfolio. Check out our guide below!
Questions? Reach out to one of our knowledgeable insurance agents. We’re eager to set you up with the right coverage and rate!
Buying a home is one of life’s biggest investments, and protecting your mortgage is critical. While Mortgage Protection Insurance (MPI) exists, term life insurance is often a smarter, more flexible, and affordable option for most homeowners.
How Term Life Insurance Protects Your Mortgage
Choose the Right Term: Select a policy term that matches your mortgage length (15, 20, or 30 years).
Set the Coverage Amount: The death benefit should at least match your remaining mortgage balance.
Designate Beneficiaries: You decide who receives the payout—spouse, family, or trust.
Enjoy Flexibility: Beneficiaries can use the funds for the mortgage or other financial needs.
Comparing Term Life Insurance and MPI
| Feature | Term Life Insurance | Mortgage Protection Insurance (MPI) |
| Beneficiary | Your chosen family/trust | Mortgage lender |
| Death Benefit | Level throughout term | Decreases as mortgage balance drops |
| Flexibility | High beneficiaries control the funds | Limited, funds only pay off the mortgage |
| Cost | Usually more affordable | Often higher for same initial coverage |
| Medical Exam | Usually required | Usually not required |
Key Considerations:
Term life insurance provides greater value and flexibility for families in good health.
MPI can be a fallback if health conditions make traditional term life unaffordable.
MPI is not the same as PMI (Private Mortgage Insurance), which protects lenders, not homeowners.
For most homeowners, term life insurance offers peace of mind, flexibility, and affordability. Cornerstone Insurance Agency LLC can help you evaluate your options and find the policy that best protects your home and family.