Learn about the factors that can affect the cost of your Mortgage Life Insurance, and why you should always get a quote from a licensed advisor.


When It Comes To Insurance, Cost Matters To Consumers

In our survey of Calgarians, over 50% of respondents stated that the first factor that they considered when choosing insurance was the cost, and that they generally compared about 2-5 options when narrowing down and choosing an option.

Because cost is such an important factor, it's essential to estimate it correctly. Relying on a “ballpark” estimate from your friend who got a similar policy might not be the best idea, because your situations could be very different. For example, if you smoke, your policy may be more expensive than your friend’s. By the same token, if you are younger than your friend, your premiums may be lower.

Here is a list of things that can impact your policy rates with different insurance providers:

  • Age - Younger respondents are eligible for lower premiums. If you’re considering starting a family or buying a home, it may be worth it to look into getting Mortgage Life Insurance (MLI) sooner, rather than later.
  • Smoker vs Nonsmoker Status - In addition to contributing to significant health issues, being a smoker can also create much higher premiums. 
  • Joint vs. Single Coverage - if you’re getting joint coverage, your premiums per person may be much cheaper than getting two separate policies.

 

Should I Always Get The Cheapest Mortgage Life Insurance I Can Find?

When purchasing mortgage life insurance, while you should pay attention to value, you also shouldn’t always solely for the cheapest option available.

When considering a mortgage life insurance policy, in addition to cost, you should consider:

  • Portability - If you change policies, does your mortgage protection come with you? Or will you be required to re-qualify at a higher premium (keep in mind you would be older then)?  With 20/20, MLI is portable.
  • Beneficiary - Does your MLI policy allow you to choose who gets the payout, or is it locked into your mortgage with the bank as a beneficiary? With 20/20 you choose.
  • Ease of Application - No one likes taking time off work for parameds, or having to leaf through their entire medical history. If you’re in reasonably good health, you may want to opt for a policy that lets you skip the exam. For example, with 20/20, if you can answer “yes” to some simple medical questions, you can skip the medical exam for coverage up to $600,000.
  • Ongoing Customer Service - Mortgages are an important decision, and so is insurance. The company you choose to go with, if all goes well, is one which you will have a longstanding ongoing relationship with. This company should be easy to get in touch with if you’d like to cancel your coverage, to change your contact information, or if you have any questions.  20/20 is underwritten by Assumption Life who has been an insurance provider for over 100 years, so they are not going anywhere, anytime soon.

 

Contact Us For Affordable Life and Mortgage Insurance Options

If you’re shopping around for mortgage life insurance with the best features, or would just like a quote, contact us at 403-702-5433 to get in touch with an agent, or send us a message through our online contact form. Need assistance right away? Simply the chat button in the bottom left of the screen.

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Posted by AIME Financial

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