Quote:
Originally Posted by bizaro86
Interesting. That's super unusual. I've been offered mortgage insurance from a number of different combinations of lenders/insurers over the years, and it's never been even close to the cost of term.
Would you mind sharing the lender/insurer?
|
It was 10 years ago through whoever Scotiabank was using at the time. I had done the math on the options and then in doing research found all of the comments on why it wasn’t a good deal so rechecked everything and confirmed the underwriting. It was a better deal for about 5 years then I switched over to a 10 year term policy.
The only caveat would be if my wife and I died together in an accident we wouldn’t have been paid out twice. Essentially the discount from both my wife and I both being insured on the mortgage made it lower cost. What I don’t think I considered at the time was what was the likelihood of both of us dying together vs dying apart.
The other thing is that the administration portion of insurance is quite high on a policy so if you have existing term life insurance needs and are just increasing by the value of your mortgage it’s going to be cheaper. In my case I had enough low cost insurance through my work at the time that I didn’t need an additional term policy so it was a 10 yr term life product for my wife and I vs mortgage insurance. If you need a term life policy anyway then increasing the amount to account for paying a mortgage off likely is cheaper. Also I can hear the insurance professionals cringing on relying on work place insurance because it’s tied to your job rather than just to you making payments.