Quote:
Originally Posted by GGG
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.
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Interesting - thanks for sharing. I actually tried to buy first-to-die insurance once. When were first married, neither my wife nor I could have covered our mortgage, but we had no kids. I figured why pay extra for a second payout, if one of us died the other one probably needed the money, but if we both died I didn't see a big reason to make sure our relatives ended up with a huge windfall. But the difference in cost between two regular term policies and a joint first-to-die was only a few percent, so I just bought the term policies.