Your house is a big investment - probably one of the

biggest you're every likely to make. It is also the place

that you and your loved ones call home; a shelter and haven

from the outside world. That's why it is so important to

ensure that your home and family are protected in the event

of your death. It's not a topic that any of us like to

dwell on, but the sad fact is that should you die and the

family are no longer able to afford repayments on the

house, they will lose the property and the roof from over

their heads. Having a good life insurance policy in place to protect

your property in the event of your death is vital. When you

die, your family will have enough to worry about without

the added stress of how they are going to hold on to the

family home. Your life insurance policy will ensure that

this problem is eliminated, with the mortgage balance being

paid in full upon your death. The main types of mortgage life coverThe type of mortgage life insurance cover that you require

will depend upon what type of mortgage you have, a

repayment or an interest only mortgage. There are two main

types of mortgage life insurance cover, which are:?Decreasing Term Insurance

?Level Term InsuranceDecreasing term insuranceThis type of mortgage life insurance is designed for those

with a repayment mortgage. With a repayment mortgage, the

balance of the loan decreases over the term of the

mortgage. Therefore, the sum of cover with a decreasing

term insurance policy will also go down in line with the

mortgage balance. So, the amount for which your life is

insured should match the balance outstanding on your

mortgage, which means that if you die your policy will hold

sufficient funds to pay off the remainder of the mortgage

and alleviate any additional worry to your family. With the decreasing term insurance, the cover is usually

taken out over the term of the mortgage, and payment is

made should you die during the term of the policy. Once the

policy has expired, it becomes null and void, so you will

receive nothing at the end of your policy if you are still

living. There is no surrender value on this type of cover,

but it does provide a cost effective means of protecting

your home and family during the life of your mortgage. Level term insuranceThis type of mortgage life insurance cover is for those

that have a repayment mortgage, where the principle balance

remains the same throughout the term of the mortgage and

the repayments made by the property owner cover the

interest payments on the mortgage only. The sum for which the insured is covered remains the same

throughout the term of this policy, and this is because the

principle balance on the mortgage also remains the same.

Therefore the sum assured is a fixed amount, which is paid

should the insured party die within the term of the policy.

As with decreasing term insurance, there is no surrender

value, and should the policy end before the insured dies no

payout will be awarded and the policy becomes null and void. Terminal illness benefitBoth of the above types of cover normally include terminal

illness cover, which means that the mortgage is cleared

should you be diagnosed with a terminal illness rather than

waiting until you actually die. This helps to ensure that

you do not have the additional worry of trying to meet

repayments when a terminal illness takes away your ability

to work and earn money, and at a time when the whole family

has enough to worry about without having to stress about

meeting mortgage repayments. Critical illness coverCritical illness cover is another type of insurance policy

that can be added on to either of the above mortgage life

insurance polices and provides an extra element of

protection and peace of mind. This type of cover can also

be taken out as a stand-alone policy, but usually proves

much better value if simply added on to a main insurance

policy. With critical illness cover you will be eligible for a

payout in the event that you are diagnosed with a critical

illness. If you then go on to recover from the critical

illness, the payout is yours to keep but the policy becomes

null and void following your claim. The illnesses that are

covered by this type of policy are defined by the insurer

so you should ensure that you check the terms when taking

out critical illness cover. Adding critical illness cover to your policy will only

increase your repayments by a small amount, but can provide

valuable protection if you are diagnosed as critically ill

and are therefore unable to work. With your mortgage repaid

from the payout of this policy, you will not have the

additional worry of trying to keep a roof over your head at

a time when you should be concentrating on trying to make a

recovery. SummaryAs indicated by the features of the two main types of

mortgage life insurance cover, the policy you go for will

depend largely upon the type of mortgage you have. Both

types of cover offer value for money, with some really low

cost deals available. Of course, the amount that you pay

will ultimately depend upon the level of cover you require.

For total peace of mind it is always advisable to go for a

policy with critical illness cover incorporated into it. Having some form of mortgage life cover is essential to

protect your home and your family. After working hard to

buy your own property, the prospect of it being repossessed

in the event of your death can be worrying both for you and

for your family. A mortgage life cover policy will ensure

that this does not happen, and will give your family the

security of knowing that whatever happens they will still

have a roof over their heads. Claire Bowes is a successful freelance writer and owner of

http://www. a1-life-insurance-quotes. co. uk where you will

find further advice and information on life insurance, critical illness cover, income protection and mortgage protection cover.

Author:
Claire Bowes