MPI stands for Mortgage Protection Insurance, which is a type of life insurance that covers the remaining mortgage payments in the event of death or, sometimes, disability or job loss. MPI policies generally work like conventional life insurance policies, where you pay a monthly premium to maintain coverage and ensure that your coverage is current. In exchange for these payments, your MPI provider will pay out financial benefits to lenders, who are the beneficiaries receiving funding when you die. It is important to note that MPI is not the same as private mortgage insurance (PMI), which is a form of mortgage insurance that protects the lender in case you stop making payments on your loan. MPI is not required, so it depends on your personal situation whether it makes sense for you. If you have term life insurance, it might already cover any remaining mortgage debt. And if you don’t, it’s worth comparing the costs and benefits of the two different insurance types before you make a decision.