Reasonably Priced Mortgage Life Insurance is Available
Affordable life insurance is available for homeowners if they opt for level term life insurance. There are a lot of reasons that this is the best type of mortgage life insurance, as well as the most affordable. Level term means that the amount of the policy stays the same throughout the twenty or thirty year term of your mortgage. The policies that are usually given by banks are decreasing term, which are policies that have amounts that go down each year.
These are more reasons that fixed term mortgage life insurance is the better choice. The reason for purchasing mortgage life insurance is to be sure your family can keep their home in case you die-that the proceeds of the policy will pay off the mortgage. You can be confident that the mortgage will be paid and your loved ones will have a house to live in. This means that the home loan is immediately paid off, and your family will not have financial concerns.
The decreasing term feature of typical banks policies is a definite disadvantage in today’s world. Years ago, home loans did decrease steadily in value as the mortgage payments were made.
In addition, the insurance from your bank is actually the lender’s policy, so if you pay off the mortgage, the insurance no longer exists. But what if you do not prefer your mortgage insurance to go down over time, you want it to go on to cover you at the same rate?
This is a disadvantage today, when homeowners tend to have more than one mortgage in a lifetime. Whether it is to change residence, or to take advantage of different rates, mortgages are constantly being refinanced. The policies lenders sell are cancelled if the mortgage is paid off, regardless of whether you sold the house or simply refinanced at a better rate, so you end up with no coverage at that point.
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More Examples:
- $310000 mortgage insurance (life) for a 51 years old female (non-smoker): CIBC: $216.26 per month. InfoPrimes.com: $49.76 per month. Savings: $39960 over 20 years.
- $109500 mortgage insurance (life and disability) for a 25 years old male (non-smoker): Royal Bank of Canada: $18.42 per month. InfoPrimes.com: $15.69 per month. Savings: $819 over 25 years.
- $160000 mortgage insurance (life) for a 50 years old male (non-smoker): CIBC: $74.99 per month. InfoPrimes.com: $37.08 per month. Savings: $6824 over 15 years.
- $85000 mortgage insurance (life and disability) for a 38 years old male (non-smoker): National Bank: $35.72 per month. InfoPrimes.com: $21.73 per month. Savings: $4197 over 25 years.
- $400000 mortgage insurance (life and disability) for a 41 years old male (non-smoker): Royal Bank of Canada: $247.66 per month. InfoPrimes.com: $119.79 per month. Savings: $23017 over 15 years.