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What Is Mortgage Life Insurance?
Mortgage life insurance is any life insurance policy that pays off your outstanding home loan balance when you die. The term is used interchangeably across three overlapping product types that work very differently:
Mortgage Protection Insurance (MPI) is a decreasing-term life insurance product sold specifically to protect a single mortgage. The death benefit shrinks over time in line with your declining loan balance, while the monthly premium stays fixed. Most policies pay the death benefit directly to the lender. MPI requires no medical exam in most cases, making it accessible to people with health conditions who cannot qualify for standard term life insurance.