Home / FAQs / How are the premiums calculated for the increase in VMLI coverage?

How are the premiums calculated for the increase in VMLI coverage?

There are four factors which go into the calculation of VMLI premiums. These factors include: Your mortgage balance on the effective date of VMLI coverage Your age at the time of the effective date of VMLI coverage The number of outstanding months remaining on your mortgage on the effective date of your VMLI coverage The total amount of VMLI coverage Your increased coverage premiums will be determined by using the same factors used the last time you obtained VMLI coverage. The difference is limited to the amount of VMLI coverage that you might receive. Please note the following as an example: Date coverage went into effect: August 11, 2005 Mortgage Balance on the date coverage went into effect: $300,000 Insurance age at Effective Date: 56 The number of outstanding months on Loan at Effective Date: 360 VMLI Coverage Amount: $90,000 VMLI Premium: $161.66 The same factors applied to VMLI coverage but in the amount of $200,000: Date Coverage went into effect: August 11, 2005 Mortgage Balance on the date coverage went into effect: $300,000 Insurance age at Effective Date: 56 VMLI Coverage Amount: $200,000 VMLI Premium: $306.98

Leave a Reply

Your email address will not be published. Required fields are marked *