What happens to my mortgage life insurance if I refinance or sell? A standard term life policy is entirely portable — refinancing, selling, or moving has zero effect on it. Your coverage continues unchanged. A dedicated MPI policy tied to a specific loan may become void or require re-enrollment when the original loan is paid off or replaced. This is one of the practical advantages of term life over MPI: you never lose coverage due to a financial transaction that has nothing to do with your health.