How are Mortgage Life Insurance premiums calculated?

 

Premiums are based on your age at the time of application and mortgage balance. Once approved, your premiums will not increase over the life of the mortgage. Below are the monthly rates per $1,000 of balance, as well as an example of how premiums are calculated.

Age	18-30	31-35	36-40	41-45	46-50	51-55	56-60	61-64
Individual Coverage	$0.09	$0.13	$0.20	$0.29	$0.40	$0.55	$0.73	$0.97
Joint Coverage	$0.13	$0.18	$0.29	$0.41	$0.60	$0.84	$1.09	$1.51

 

*Rates are subject to change. PST on insurance applies in Manitoba, Newfoundland, Ontario and Quebec. 

Example: Let's assume you are 39 years old, your spouse is 37, and you have a mortgage balance of $150,000. For individual coverage your monthly premiums would be $30 per month ($0.20 x 150). If you decide to take joint coverage – meaning you would be covered should either you or your spouse pass away – your premiums would be $43.50 per month ($0.29 x 150).