Many of us don’t want to think about life insurance, but it can be invaluable when protecting your family and assets. One of the benefits of life insurance is paying off your mortgage in the event of your death. That said, not everyone needs this type of coverage. Below, our agents at Virtual Insurance Agency in Northville, MI will help explain the difference.
What is Mortgage Protection?
One of the main benefits of mortgage protection is that it’s designed to help pay off your mortgage in case of an accident. Your home is important, especially if you have a loved one or a family member. If you pass away or aren’t able to work, then having a life insurance policy that includes mortgage protection can help you pay off your assets.
Are There Different Types?
While life insurance may cover mortgage protection, there is also mortgage protection insurance, otherwise known as MPI. However, life insurance can also help with your mortgage. That said, life insurance allows you to bundle mortgage protection without taking out any other type of insurance.
A standard life insurance policy only covers a handful of incidents. However, some life insurance policies allow policyholders to bypass MPI and instead include the same coverage in their policy. MPI and similar coverage include decreasing death benefits and term life insurance, enabling policyholders to have standard death benefits.
How to Choose the Right One?
Understanding the difference between the two can help you decide which one is best for your needs. Some people may require MPI policies, while others may not. MPI is designed to help pay off your mortgage, while life insurance is designed to help pay off your mortgage if you pass away.
The best way to choose which one you need is to determine your coverage. To get MPI coverage, one would need to qualify for it. On the other hand, getting life insurance is much simpler but doesn’t have as much coverage. Our agents at Virtual Insurance Agency in Northville, MI, can help you choose the right coverage.
