Mortgage Protection Insurance Cost Calculator
Mortgage protection insurance (MPI) pays off your mortgage if you die. Term life insurance does the same job — usually cheaper and more flexible. Compare MPI premiums against an equivalent term life policy by age, health class, and mortgage balance.
| Mortgage Balance | — |
| Years Remaining | — |
| MPI Monthly Premium | — |
| Term Life Monthly Premium | — |
| MPI Total Cost | — |
| Term Life Total Cost | — |
| Savings with Term Life | — |
What Is Mortgage Protection Insurance
Mortgage protection insurance (MPI) is a life insurance policy that pays off your mortgage if you die. The death benefit goes directly to the lender — your family gets a clear title to the home but no cash. The premium is typically tied to the mortgage balance and declines as the balance does (declining term).
MPI is often sold by mortgage lenders at closing, sometimes with simplified underwriting (no medical exam). Premiums are higher than equivalent term life because the underwriting is looser and the lender takes a cut.
Why Term Life Beats MPI
Term life insurance gives your family the death benefit as cash — they can pay off the mortgage, invest it, or use it for living expenses, whatever they need. MPI pays only the lender. If your spouse would rather rent and travel after your death than stay in the house, MPI is useless to them.
Term life premiums are also cheaper for the same death benefit. A healthy 40-year-old can get $350K level term for around $25/month; MPI on the same balance often runs $40-60/month. Over 25 years, the difference is $4,500-10,500.
When MPI Might Make Sense
MPI uses simplified underwriting, so it can be a fit for: people who can't qualify for standard term life due to health conditions (cancer history, diabetes, severe obesity), or those who want zero-friction insurance signed up automatically at closing.
If you're insurable, always shop term life first. Get quotes from 3+ companies via Term4Sale, Quotacy, or PolicyGenius. The medical exam is free and only takes 30 minutes.
Declining vs Level Death Benefit
MPI is typically declining term — the death benefit drops along with your mortgage balance. After 10 years, your death benefit may have fallen by 30-40%. Yet you still pay the same premium. The lender benefits; you don't.
Term life is level death benefit — stays the same for the full term, regardless of mortgage balance. If you've paid the mortgage down by year 15, the extra death benefit becomes cash to your family. Better deal.