Should you buy mortgage protection insurance or life insurance?

 
How do we put this bluntly? You're pretty much always better off with term life insurance.
For starters, it covers more than just your mortgage payments. Your beneficiary can essentially use the death benefit for whatever they need. But even beyond that, traditional term life policies offer a lot more flexibility. You can choose your benefit amount (as opposed to being restricted by the size of your mortgage). You have more options when it comes to setting the length of your policy. MPI usually comes in 15- or 30-year terms (you know, just like a mortgage), while term life typically touts 10-, 20- or 30-year terms, though shorter terms may also be available. Plus, MPI policies almost always cost more than traditional term life.
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When should I buy mortgage protection insurance?

There is one-time to consider MPI: If you're health is poor and you can't qualify for a standard term life insurance policy. That's because, as you'll recall, you get to skip the medical exam that's a key part of term life underwriting. It'll cost you in premiums, obviously. No-medical exam life insurance is generally more expensive than standard life insurance, given the risk the carrier is taking insuring you sight unseen. But given how major mortgage debt can be — credit bureau Experian puts the national average mortgage debt is $196,014 — MPI is better than nothing.

How to shop for mortgage protection insurance

Having said that, you'll want to do your due diligence if you're considering MPI. Not all insurers are created equal and — in fact — some of those offers flooding your mailbox post-home purchase might not be legit or even reasonably affordable. Here are some steps to take when shopping for MPI.

• Pull term life insurance quotes anyway, even if you think your health puts an affordable policy out of reach. You might be in for a surprise.
• Shop around for MPI, if term life is truly out of the question. There's still generally a price differential across MPI providers and you'll want to get the best deal you absolutely can on your coverage.
• Run prospective insurers through Google to see if any complaints pop up and/or check any review that were posted. You can also check out the company's standing with the Better Business Bureau or A.M. Best.
• Be extra-wary of overly-aggressive offers. Remember, if it seems to good to be true (FREE MORTGAGE!!!), it probably is.

Looking to learn more about how life insurance works in general? Visit our learning center for company reviews, real-life stories and more.

Jeanine Skowronski is Policygenius' senior editor of personal finance. She's also a #CrankyXennial.