Mortgage protection insurance (MPI) is a type of insurance policy that pays off the balance of your mortgage when you die, become disabled, or cant work. It can help your family cover your mortgage under certain circumstances and avoid foreclosure if you can no longer work to pay your mortgage. MPI policies function as a type of life or disability insurance, and the cost of the monthly premium varies depending on the amount of the mortgage, your age, and your health. The benefit from this kind of insurance is generally decreasing, meaning the possible payout goes down over time as you pay off more of your mortgage. MPI is not required, and you are free to cancel at any time, but keep in mind that you won’t get any of the money back that you paid to your insurance provider when you cancel. MPI is only a good idea for people who can’t get approved for traditional forms of life or disability insurance, or for whom premiums for a traditional policy are cost-prohibitive.