Best Answer: It should mean
MPI = Mortgage Protection Insurance. This type of coverage is designed to pay off the mortgage if you die and provide an income stream if you become disabled. Sometimes however an agent will sell just a term or a decreasing term policy for this, its ok to do that as long as you know what you are getting. But a true MPI will cover life and disability as well as have some other options in there for you.
PMI = Private Mortgage Insurance. It’s an insurance policy that protects the lender against default on the loan. You don’t need this unless you have put down less than 20% on the down payment for the home.
disb = Disability Income Insurance. This is coverage if you become disabled and can no longer work, it will pay you a monthly benefit. You have to make sure you understand this coverage as some policies will only pay if your disability is as a result of an accident. The better ones will cover accident and sickness. You should check the elimination period, what this is, is the amount of time you are disabled before the benefits kick in. A standard time for this would be 90 days.
Check the benefit amount as well; the amount should be at a minimum your monthly mortgage payment although you are
entiletled up to about 65% of your income. And the last thing to check here would be the benefit period; this is the amount of time you will receive benefits if you do become disabled. A good coverage for protecting your mortgage would be 18 to 24 months as it kind ties in with SSI disability benefits for longer terms.
The fact that you have both MPI and disb listed on your mortgage statement would lead me to believe that you have a decreasing term policy on your life and maybe accidental disability coverage. Typically when you buy directly from the lender this is what they give you and they write themselves as the beneficiary. My personal opinion is that it is better to have your spouse or loved ones listed as the beneficiary. And to have a level benefit.
Being in the insurance industry thats what these codes would mean to me, however there is no standard codeing system for this and the mortgage company could code it however they like.
Call the mortgage company; tell them you want some detailed information on your coverage and a copy of the policy or policy certificate. Then contact some local agents in your area, you might be able to get a better deal or get a better coverage. What you have may be good but it never hurts to shop around.