Mortgage Protection Insurance (MPI)
Decreasing term life sold by mortgage lenders — usually overpriced vs. equivalent level term.
Full explanation
Mortgage Protection Insurance (MPI) is a decreasing term life policy sold by mortgage lenders, where the death benefit decreases over time roughly tracking the mortgage payoff schedule. Premiums are typically higher than equivalent level term from a major life carrier, and the proceeds go directly to the lender (not your family). Level term life from any major carrier provides the same coverage at lower cost, with proceeds going to the family who can use them for any purpose (mortgage payoff, living expenses, education). For most homebuyers, level term wins.
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