Calculator Inputs
More options are included for currency, extra payoff, riders, and output format. Results appear above after you submit.
Example Data Table
| Scenario | Loan | Rate | Term | Extra Principal | Type | Illustrative Coverage |
|---|---|---|---|---|---|---|
| Sample A | $250,000 | 6.50% | 25y | $0 | Decreasing | $255,000 |
| Sample B | $400,000 | 5.75% | 30y | $150 | Level | $430,000 |
| Sample C | $180,000 | 7.10% | 20y | $75 | Decreasing | $190,000 |
Formula Used
- Monthly payment: PMT = P · i(1+i)^n / ((1+i)^n − 1), where i = r/12.
- Simulated balance with options: month-by-month interest, then principal reduction from scheduled and extra payments.
- Remaining balance: computed after paid months, respecting interest-only settings.
- Recommended coverage: C = max(0, (B_now·pct + debts + buffers − offsets)) · (1+margin).
- Rider growth: level coverage may scale by (1+g)^t if enabled.
- Premium estimate: Annual ≈ (Coverage/1000) · Rate with simple multipliers.
How to Use This Calculator
- Enter your loan amount, rate, term, and months already paid.
- Add extra principal or interest-only months if applicable.
- Choose coverage type, percent, and optional growth rider.
- Add buffers and other debts, then subtract cover and savings.
- Select schedule detail and graph mode for your outputs.
- Submit, review results, and download CSV or PDF anytime.
Coverage target and loan profile
Mortgage life cover is often sized to the remaining balance, not the original loan. This calculator estimates today’s balance from rate, term, and months paid, then applies a coverage percentage to model partial or full payoff protection.
With extra principal payments, the simulated balance declines faster, which can reduce the decreasing-cover line. Use monthly output when you need fine-grained tracking for accelerated payoff strategies.
Buffers, offsets, and real cash needs
A pure payoff benefit may leave gaps for final costs and household transition. Add final expenses and an income buffer, then subtract savings and existing insurance to avoid double-counting resources. The tool also lets you include other debts for a consolidated protection goal.
Inflation can be applied to buffers over the policy term, helping you stress-test whether a fixed benefit still covers future costs.
Level versus decreasing protection
Decreasing protection typically tracks the projected mortgage balance, so the benefit shrinks as debt is repaid. Level protection stays constant and may better support dependents, especially when non-mortgage needs are meaningful.
Use the chart buttons to switch views and compare how each structure behaves across the selected term and schedule granularity.
Premium signals and pricing drivers
Premiums are estimated using a simplified annual rate per 1,000 of coverage, adjusted by age, smoking, health class, gender, and BMI. These fields provide directional insight into sensitivity, not a quote.
If you enable a coverage increase rider, the calculator approximates a mid-term uplift, reflecting that growing benefits usually cost more than flat benefits.
Exports, audit trail, and decision use
CSV export captures the table values for spreadsheet checks, scenario comparison, and record keeping. PDF export provides a compact summary and a paginated schedule suitable for sharing with advisors or family decision makers.
For best results, run three scenarios: baseline, conservative buffer, and accelerated payoff with extra principal.
FAQs
1) What is the recommended coverage based on?
It combines the estimated current mortgage balance, coverage percentage, other debts, and buffer items, then subtracts savings and existing insurance. A safety margin and rounding are applied for a clean target amount.
2) Why does the balance differ from my lender statement?
This model assumes a fixed rate and standard amortization, then simulates options like extra principal and interest-only months. Escrows, fees, variable rates, and actual payment dates can create differences versus lender accounting.
3) When should I choose decreasing coverage?
Choose it when your primary goal is mortgage payoff protection and you do not need large extra funds for dependents. It can align benefit size with the projected debt that remains.
4) What does the premium estimate represent?
It is an educational estimate derived from a simple rate-per-1,000 model with multipliers. Actual premiums depend on underwriting, policy features, riders, jurisdiction, and insurer pricing, so use this for comparisons only.
5) How does the coverage increase rider affect results?
When enabled, level coverage grows by the selected annual percentage, and the premium view reflects an approximate mid-term uplift. This helps visualize whether rising benefits keep pace with future costs.
6) Should I use monthly or yearly schedule output?
Yearly is cleaner for planning and quick comparisons. Monthly is better for accelerated payoff strategies or when you want detailed exports. If your table becomes long, use the CSV for deeper analysis.