South France Immobilier Property & Luxury French Real Estate by RHF International

Three big factors determine how much you have to pay for mortgage insurance protection. If you compare a similar policy, you may receive different quotes, based on the size of the mortgage, and the condition of the owner (age, smoker or non smoker).

Both kinds of mortgage insurance-life to pay down the mortgage, or disability to pay mortgage payments-use these three things to calculate the premium.

As in most insurance policies, the health and age of the insured have the most impact since it determines the possible chance the policy will have to be paid. There are policies that do not need that the health of the insured be certified by an examination. It is very risky to claim good health without it, however, since the insurance company can deny any claim if it arises from a condition that they can prove to be known to you at the time the policy was written. Many smokers think they can hide this fact and keep the premium lower, and assume the insurance companies can’t know. They will know, and if you have made false statements on the application, you may jeopardize the entire policy.

The two types of policies offered are regular, which includes smokers and non smokers, which of course, does not include smokers. Of course, a smoker’s risk is already priced into that policy.

It also has to be recognized that any policy that does not have a health screening will have an automatic cost built in to cover additional risk. So those who are in extremely good health should think about going for the physical to see if lower premiums are available for him.

Age is a big factor in the way premiums are calculated, and if you compared a quote for a 38 year old, same mortgage, same length left on the loan, it would be less than half that of a 50 year old. Lowering the mortgage amount insured will not change the premium a great deal. That age has the most impact should not be a surprise; the insurance increases its collection period and decreases its payout period.

The amount of the mortgage willhave an impact on the cost of the insurance. Prior to the $250,000 threshold, though, there is not a big impact on prices. Larger mortgages command a higher premium and the insurance company will also insist on an assessment to prove the value of the property.