how to connect touch probe to mesa 7i96?

I have a NPN-NO type of touch probe which I want to connect to 7i96 as probe input. Is it the correct way to wire to 7i96 as shown in the following?

Because the probe is normally open, it is continuously provides voltage to 7i96 input4 as a NC signal. When the probe touch workpiece. the signal will pull the voltage to ground which is an open signal to 7i96. Is it correct?

Please forgive my limited circuit knowledge. Any input is appreciated!

Since you have a NPN sensor, it would make more sense
to connect the 7I96 input common to +12V
(so the 7I96 inputs sense a connection to ground)

This would mean rewiring any home switches
etc with a common ground

Then this connection is a Normally Open signal to 7i96? Should a NC signal be preferred for inputs to 7i96?

For limit switches NC is preferred
(so a broken wire is detected as a fault)

But your probe is NO

Peter, thank you for the explain. Let me reroute my limit switchs.