For a 30-year-old with a $200,000 mortgage and a 30-year term, coverage costs approximately $25–$30 per month — about the same as a single dinner out.
Smoker rates are substantially higher. A 40-year-old male smoker pays approximately $123–$160 per month for the same $500,000/20-year coverage that costs a non-smoker $35–$65. A 50-year-old male smoker in New York carrying $300,000 of coverage on a 20-year term pays approximately $167 per month.
Dedicated Mortgage Protection Insurance (MPI)
MPI from bank-affiliated or direct-mail providers typically costs $30–$150 per month for most homeowners. A 50-year-old male in good health can expect to pay $15–$40 per month for a 10-year MPI policy on a $300,000 balance. A 45-year-old female non-smoker in Texas carrying $400,000 in coverage over 30 years pays approximately $70 per month.