It certainly is since this insurance plan stabilizes the national housing market by motivating people to purchase properties with lower down payments. If everyone has to pay 20% or more down payments, it will be challenging for most to participate in the housing market, and home sales will be reduced significantly. Mortgage insurance also benefits the lender and the mortgage insurer because they can both share the risk. You can get a reasonable interest rate from this as well. So basically, every party can benefit somewhat from this type of insurance policy which boosts the economy.