MPI (Mortgage Protection Insurance) covers collateral risk and cash-flow risk. This type of insurance is provided as opposed to TMI (Traditional Mortgage Insurance) or PMI (Private Mortgage Insurance), which cover only collateral risk.
MPI protects both the lender and person who borrow money agains the event death.
It provide to the insurer a guarantee of timely receipt of the payments, under this coverage investor continues to get the payments, even after the borrower defaults.
The best thing of MPI is that cost the insurer is comparable to the cost of TMI.