It doesn't take much financial sense to know that insuring the largest purchase you're likely to ever make is a good idea. Finding good coverage for a mortgage starts with first weighing your options. The two main choices for Canadians are between term life insurance and mortgage life insurance. It may seem that given the name mortgage life insurance would be a better choice, but exploring similar coverage options with term life insurance may be worth your time. Unlike mortgage life insurance, the death benefit from term life insurance never decreases. There are other benefits that are discussed further here.
Mortgage life insurance is normally based on your age and the amount of your mortgage. Banks normally have their own calculations, but most are similar when it comes to the fundamentals. For example, TD Canada Trust calculates mortgage life insurance using what age group you fall into. For borrowers who are between 18 and 30, mortgage life insurance costs 9 cents a month for every $100,000 borrowed divided by 1000. For those 31-35 that amount jumps to 13 cents. With that example, if the size of the mortgage was $100,000 the individual would expect to pay $13 dollars a month. If a spouse of the same age was also on the mortgage, then that amount would double minus 15% for a total of $22.10 a month.
It is important to find out whether mortgage life insurance is your best option. There is no better way than to discuss your options with a licensed insurance professional. LifeCover.ca works with a network of independent brokers across Canada who are just as committed as us ensuring you get the best coverage at a price you deserve. See how easy insurance can be with us and request a free quote today.