If you are a homeowner with a mortgage, you might have looked into or received offers for mortgage protection insurance. While there are different variations, this type of insurance typically will offer coverage that will pay your mortgage in the event that you are not able to.

Mortgage protection insurance (MPI) is essentially life insurance that pays your mortgage if a certain event, such as death, disability or job loss occurs.

This type of insurance is not for everyone. Such factors as your financial situation and your health can factor into your decison to obtain this isurance or to forgo this protection. It is best to do your research to see if this might be something for your situation. Below are some pros and cons of mortgage protection insurance and some things to look for when doing your homework.

The way this insurance works, is that if in the event you die, the insurance company will send a check directly to your mortgage company. If you are disabled, suffer a job loss, the mortgage payments will also go directly to your mortgage company. The terms of these payment such as length in time will vary, typically for a few years.

Another benefit of MPI is most polices are issued on a "guaranteed acceptance" basis. " This means that when you apply, there will be only a few questions and you are accepted-guaranteed. If you are someone who typically is uninsureable due to health issues or work in a high risk occupational field, this is a great opportunity for coverage.

Some cons of mortgage protection insurance is that it is a declining-benefit policy, which means that payoff amount decreases as you pay down your mortgage.
In addition, some financial advisors recommends that homeowners consider other ways of planning for their future. 

If you decide to obtain this type of insurance, be sure to shop around and ask about specifics and services in additon to cost. Be sure to research their rating thru A.M. Best Co.