The way that this type of insurance works is that it runs on a fixed term, and most people have it run along with their mortgage. This way if you happen to pass away before the term ends, your family will be able to use the policy to pay off your mortgage. The payment will come in one lump sum.
So in the event of your death your family will not be struggling to figure out how to make the mortgage payments. They also will avoid having to sell the home or downsize. You would never want your family to have to go through this.
The biggest advantage to having mortgage life insurance cover is that you will only be required to pay for the specific coverage that you require. As you make payments on your mortgage and your balance decreases, your level of coverage will go down and so will your payments.
You can get these policies either on a joint or a single life basis. Should you decide to get a joint policy, only the first claim will be paid out. It will be your decision how long you want the policy to run, but it is usually best to have it run along with your mortgage. You will also be able to get the opportunity to add on extra benefits like critical illness cover for a higher premium.
When it comes to critical illness benefits on your life insurance you will be able to get paid out either if you die or if you become critically ill. You only get paid out on specified critical illnesses, so you will want to check the list to see what is covered. If there are any illnesses that you feel you may be particularly at risk for, you should make sure that they would be covered.
You will also want to read the details of the policy and see if the life insurance and the critical illness insurance can ever be separated. This is because with some policies, as soon as you make a critical illness claim your life insurance will no longer be in effect. You do not want this to happen, because once you have submitted a critical illness claim it will be nearly impossible for you to get a life insurance policy.
Do not just take the first policy you find. Make sure that you shop around and look for the best deal for your money. Policy terms and premiums will always vary from one provider to another, and mortgage protection life insurance can be very affordable when you are able to find the right provider.
source: Get Security With Mortgage Life Insurance Cover
