Mortgage Protection Life Insurance (MPLI) and Private Mortgage Insurance (PMI) are two different types of insurance, with different purposes.
Mortgage Protection Life Insurance (MPLI) is a type of life insurance that pays off a borrower's mortgage in the event of their death. The death benefit from the policy is paid to either the lender or another beneficiary to pay off the remaining mortgage balance. It is generally an optional coverage that the borrower can choose to purchase.
Private Mortgage Insurance (PMI) is a type of insurance that protects the lender, not the borrower, in case the borrower defaults on the loan. It is typically required by the lender when a borrower puts down less than 20% as a down payment on a home. The purpose of PMI is to protect the lender in case of default, not to provide financial protection to the borrower or their family.
MPLI is a type of life insurance that pays off the mortgage in case of the borrower's death, while PMI is a type of insurance that protects the lender in case of default. They have different purposes and are purchased in different situations.
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