Mortgage protection insurance is a form of insurance designed to cover your mortgage in case of a certain event, such as death, sickness, unemployment, and disability in the course of the term. It is also called mortgage payment protection insurance.
Question may arise on everyone can get the benefits. Yes, but first you have to have that policy. If you are a policyholder, then you can only have the benefits of insurance company, which can provide coverage for your mortgage when you are out of world and your insurance company pays the benefits to your mortgage lender.
There are many types of mortgage protection insurance depending on various conditions and laws of policy. Mortgage protection cover is one type of them, which reduces over time, for example the sum of money you owe on your mortgage goes down. This is named reducing term cover. It is very common and one of the cheapest form of life cover. Besides, an expensive type of mortgage protection policy is known as a level-term policy, which can give you a sum of money throughout the mortgage term.
If you want, you can add critical illness cover to your mortgage protection plan. By the way your mortgage will be cleared when you are dead or in case of a serious illness by your mortgage policy. On the other hand, if you choose to add critical illness cover to your insurance plan, then your premium can be higher.
The benefits you can get
Being a policyholder is a way to get benefits depending on the policy provided. Here, every policyholder has right to get the benefits of insurance company but the benefits provided can be different in need. Depending on laws and conditions, policyholder can be rejected to get the benefits in case of breaking its rules and regulations.
You can generally look for a mortgage protection cover plan to cover your life by having a mortgage in your own name only. On the other hand, if your mortgage has more than one name, then you will need to be in joints names for your mortgage protection policy. This is a way to get your mortgage paid off before the end of the term in the event of your death or illness.