The Kind of Life Insurance You Can Afford
Your best bet for affordable mortgage life insurance is level term life insurance. In addition to being the most reasonable, it has many other advantages over other types of insurance. A level term policy is designed for the period that suits the term of the mortgage, such as 15, 20 or 25 years. These are different than the policies lenders typically sell, which are decreasing term.
These issues make fixed term mortgage life insurance much more beneficial. Since the real purpose of it is to pay down your mortgage if you pass away, the proceeds do not go through your heirs, but are paid directly to the lender. The mortgage lender is paid off, so you know that your family will be able to keep their home. This means that the mortgage is paid off at once, and your family will not have financial concerns.
Lenders’ policies are usually decreasing term, which means the amount of insurance decreases over the term of the policy. This may have worked years ago when homeowners stayed in one house and the outstanding balance of the home loan went down steadily.
This means that the insurance policy is linked to the mortgage, so any change in the home loan negates the coverage. There is a good reason why you may not want your mortgage insurance to decrease over the life of the mortgage.
This is better for today’s homeowners who tend to switch mortgages more because they change homes or they refinance more. How many people nowadays do not have five, six or seven mortgages in their lifetime? If your mortgage life insurance is from a traditional insurance firm, rather than from your bank, the policy is yours, and you keep it even if you switch mortgage companies.
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More Examples:
- $310000 mortgage insurance (life) for a 51 years old female (non-smoker): TD Canada Trust: $172.33 per month. InfoPrimes.com: $49.76 per month. Savings: $29417 over 20 years.
- $125000 mortgage insurance (life) for a 47 years old male (non-smoker): Laurentian Bank: $68.13 per month. InfoPrimes.com: $24.98 per month. Savings: $10356 over 20 years.
- $150000 mortgage insurance (life) for a 49 years old male (non-smoker) and a 48 female (non-smoker): National Bank: $113.31 per month. InfoPrimes.com: $54 per month. Savings: $10676 over 15 years.
- $204000 mortgage insurance (life and disability) for a 27 years old female (non-smoker): National Bank: $35.23 per month. InfoPrimes.com: $23.8 per month. Savings: $4115 over 30 years.
- $190000 mortgage insurance (life) for a 32 years old female (non-smoker) and a 32 male (non-smoker): Royal Bank of Canada: $37.28 per month. InfoPrimes.com: $15.31 per month. Savings: $9227 over 35 years.
The province of Newfoundland and Labrador, the province which is furthest east of Canada and contains those two main areas plus over 7,000 small islands. The area of Newfoundland is a geologically important area known as the Canadian Shield, which contains tectonic plates such as in the Gros Morne National Park, designated a World Heritage Site, and the northernmost part of the Appalachian Mountains, the Long Range Mountains. The province joined Canada in 1949- prior to that, it was a colony of the United Kingdom; it has a population of a little over one half a million people, with 94% of them living on the Island of Newfoundland. Newfoundland is simply “new found land” in English, while Labrador is named for the Portuguese explorer of the region, Joao Fernandes Lavrador. The oldest European contact was made by the Vikings who settled in L’Anse aux Meadows, but European settlement was permanently founded when Cabot, Cartier and other explorers re-discovered the area and fisherman from England, Ireland, Portugal and France started to explore and settle the area. When Sir Humphrey Gilbert claimed possession of the island in 1583, Britain claimed it a British possession.