Finding the Best Rates for Mortgage Life Insurance
Affordable life insurance is available for homeowners if they opt for level term life insurance. Let’s look at the reasons for its inexpensiveness, as well as other benefits. You buy this type of policy for the period of time that you believe you will have a mortgage, such as 30 years, 25 years, 20 years etc. The policies you will usually see when your lender talks to you regarding mortgage life insurance are decreasing term policies.
The benefits of fixed term life insurance go beyond the affordable price. The purpose of mortgage life insurance is to pay off the mortgage in the case of your death, so mortgage life insurance does just that. Since the proceeds of the policy do not go through the heirs, but rather directly to the bank, you can be sure the home loan will be paid. The idea is that the money goes directly to the bank, and your family is assured of continuing to live in their home.
The type of mortgage life insurance that banks offer is usually decreasing term, so that the amount of insurance, and therefore the protection, decreases over time. The concept is that the home loan also goes down in value over the years.
The lender controls this kind of a policy, so if you do change your home loan, you will lose your insurance coverage. Perhaps you don’t want your mortgage insurance to decrease in this manner?
This is better for today’s homeowners who tend to change mortgages more because they change homes or they refinance frequently. How many people nowadays do not have five, six or seven mortgages in their lifetime? Mortgage life insurance from an insurance company is your policy, not the bank’s policy and you therefore can keep it even if you obtain a new mortgage.
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More Examples:
- $310000 mortgage insurance (life) for a 51 years old female (non-smoker): National Bank: $135.16 per month. InfoPrimes.com: $49.76 per month. Savings: $20496 over 20 years.
- $125000 mortgage insurance (life) for a 47 years old male (non-smoker): CIBC: $58.59 per month. InfoPrimes.com: $24.98 per month. Savings: $8066 over 20 years.
- $150000 mortgage insurance (life) for a 49 years old male (non-smoker) and a 48 female (non-smoker): CIBC: $98.1 per month. InfoPrimes.com: $54 per month. Savings: $7938 over 15 years.
- $204000 mortgage insurance (life and disability) for a 27 years old female (non-smoker): Royal Bank of Canada: $32.84 per month. InfoPrimes.com: $23.8 per month. Savings: $3254 over 30 years.
- $219000 mortgage insurance (life and disability) for a 29 years old male (non-smoker) and a 25 female (non-smoker): Royal Bank of Canada: $38.67 per month. InfoPrimes.com: $25.91 per month. Savings: $3828 over 25 years.
Ontario, Canada is the second largest in area, after Quebec, and the most populated province in Canada, claiming over 13 million residents. Ontario straddles the border of the United States, with borders on five American states, formed primarily by natural borders, such as the great lakes Superior, Huron, Erie and Ontario and Ontario is the only Canadian province that borders the Great Lakes. The province got its name from the great lake of Ontario, fittingly named after the Huron word that means “great lake”. The area that is now Ontario, and was one of the four original provinces forming the nation of Canada in 1867, was lived in by the Algonquins in the west, and the Iroquois and the Huron in the east. A battle of wills took place for the control of the region between the French and English in the early 17th century, with Henry Hudson claiming it for the English, and de Champlain doing so it for the French.
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