Calculator
Mortgage Life Insurance Calculator
A rough estimate of the monthly premium based on age, remaining mortgage balance and term.
Life insurance for a mortgage is a threshold condition the bank requires before approving the mortgage, but you are not obliged to buy it through the bank - and the difference between an expensive and a cheap offer can reach tens of thousands of shekels over the term. The calculator gives a rough initial estimate of the monthly premium cost, according to age, mortgage balance and insurance term.
Estimated monthly premium
₪38
Daily cost
₪1.3
Total for the term
₪9,120
A rough estimate only, based on common market price ranges - not a quote. The actual premium depends on underwriting, health condition and the insurance company.
The estimate is rough and for illustration only, based on general market ranges and not on the data of a specific insurance company. The actual premium is set only after medical underwriting at the insurance company.
How the calculator works
You enter your age, the mortgage balance you want to insure, the insurance term, and smoking status. The calculator shows an estimate of the monthly premium, the equivalent daily cost, and the total cost over the entire term.
The formula behind the calculation
The premium is estimated as a percentage of the mortgage balance (per NIS 1,000 of balance), where the percentage rises with age at an exponential rate (reflecting the rise in risk), and is multiplied by about 2.2 for smokers. This is a general estimate only and not an exact actuarial formula of any particular insurance company.
What the calculator does not include
It does not include health condition, family medical history or hazardous occupations - all of which materially affect the actual premium
It assumes a level sum insured over the term, and does not always accurately reflect decreasing insurance that follows the actual mortgage balance
It does not compare specific insurance companies - the gaps between actual offers can be significant
Why it matters
Most buyers take the life insurance the bank offers without checking alternatives, and pay a significantly higher price for it over the years. You are not required to buy life insurance through the bank - outside insurance with the same coverage can be significantly cheaper, and it can be pledged to the bank exactly like insurance purchased through it.
Frequently asked questions
Is it mandatory to buy life insurance through the bank that provides the mortgage?
No. The bank requires insurance coverage pledged in its favor, but you may buy the policy from any insurance company you choose and pledge it to the bank.
Why do smokers pay more?
Smoking significantly raises the statistical health risk, so insurance companies price smokers at a higher premium - usually twice as much or more compared with non-smokers of the same age.
Does the premium stay fixed throughout the term?
In mortgage life insurance the premium can stay fixed or gradually decrease as the mortgage balance falls, depending on the structure of the specific policy chosen.
How can I check whether the offer I received from the bank is fair?
Comparing the price with several outside insurance agents, for the same coverage amount and term, is the simplest way to check whether there is room for savings.
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