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What happens on the day of funding? Mortgage Masters Group Does PMI Pay Off My Mortgage if I Die? – Budgeting Money – Unfortunately, private mortgage insurance, or PMI, will not pay off your loan if you die. Instead, this insurance benefits your lender if you don’t repay your debt. If you want to be sure your mortgage is taken care of if you die, you may want to choose mortgage protection insurance, or MPI.

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