There are number of insurance companies, banks and other financial institutions which offer Mortgage Insurance . The purpose of this is to review the difference between bank type creditor or mortgage insurance (life insuarnce coverage in this case) and traditional life insurance policies.
The price comparison table below shows that there is no particular age at which the Life Insurance coverage mortgage insurance premiums are less than that offered by traditional personal life insurance policy. The differences get larger As one tend to get old . In addition, while the traditional life insurance policy gives 20 year policy for age 51 to 59 , where as the Life Insurance coverage policy ends at of age 70 so it is less than 20 years and only 11 years at age 59. At age 60, the quotes are for a 10 year policy to keep them comparable to the bank mortgage insurance. However, at age 65 a personal policy is for 10 years while the bank ends at age 70.
For the purpose of this review, it was assumed that the mortgagees (male and female) were of normal health and that the amount of the mortage was $250,001. If the mortgagee was applying for over $500,000 then the traditional insurance is cheaper and less than $250,000 it will be slightly more expensive. In addition, if the mortgagee is of better than normal health, and about 40% are, then the traditional insurance would be less expensive and the savings would be over 7% in most cases.
The coverage ends
LIC | Personal Policy - T20 |
|||||
---|---|---|---|---|---|---|
Individual Policy | Joint FTD | |||||
SINGLE | JOINT | Male | Female | Combined | Traditional | |
29 | $20.00 | $27.50 | $22.05 | $17.91 | $39.96 | $27.00 |
30 | $32.50 | $45.00 | $22.28 | $18.23 | $40.51 | $28.35 |
35 | $32.50 | $45.00 | $25.43 | $20.48 | $45.91 | $37.80 |
36 | $50.00 | $70.00 | $27.00 | $21.38 | $48.38 | $40.05 |
40 | $50.00 | $70.00 | $34.20 | $25.88 | $60.08 | $47.93 |
41 | $72.50 | $102.50 | $37.35 | $27.90 | $65.25 | $52.20 |
45 | $72.50 | $102.50 | $53.10 | $37.13 | $90.23 | $80.33 |
46 | $107.50 | $150.00 | $58.05 | $40.73 | $98.78 | $88.20 |
50 | $107.50 | $150.00 | $83.93 | $58.33 | $142.26 | $125.78 |
51 | $160.00 | $225.00 | $93.83 | $65.25 | $159.08 | $137.93 |
55 | $160.00 | $225.00 | $147.38 | $97.55 | $244.93 | $210.15 |
56 | $205.00 | $287.50 | $165.15 | $108.90 | $274.05 | $234.00 |
60 | $205.00 | $287.50 | $118.80 | $83.95 | $202.75 | $185.40 |
61 | $242.50 | $340.00 | $132.08 | $92.70 | $224.78 | $205.43 |
64 | $242.50 | $340.00 | $181.13 | $123.98 | $305.11 | $279.68 |
65 | N/A | N/A | $201.60 | $128.93 | $330.53 | $294.53 |
70 | N/A | N/A | $318.60 | $223.75 | $542.35 | $506.93 |