Question:

My husband and I have recently purchased a home in Carleton Place, Ontario and are shopping around for a Mortgage Protection Plan at a viable rate. Does age play a part in premium rates? My husband is 62 and I am 63. Can you make any recommendations? Many thanks.
Barbara Spear

Answer:

Simply put, Mortgage Life Insurance is generally decreasing term life insurance which starts at the original mortgage balance and decreases annualy as the principal amount of the mortgage decreases. In all cases, I would recommend having the insurance tied to you personally and arranged outside of the group plan offered by your lender and yes age as well as being a smoker has a huge effect on the premium. If the insurance is tied to you, you can change mortgage companies as many times as you like and still be insured. If tied to your mortgage it expires when you leave that lender and you are a little older. Generally this type of insurance is not offered to individuals over the age of 65. Your personal Insurance Agent or Mortgage Broker can recommend an insurer for you.

Answered By: John Lozinski

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