At first glance, MPI costs look similar to term life insurance costs. The critical difference: MPI gives you a shrinking death benefit at a fixed premium. Each year, your family’s potential payout decreases while you pay the same monthly amount. A 30-year term MPI policy on a $350,000 mortgage may only pay out $100,000 if you die in year 25 — but your premium in year 25 is still the same as year one. Term life insurance pays the full $350,000 on day one and on the last day of the policy term. The cost comparison is not premium vs. premium — it is total value over time.