Terminal illness benefit

Both of above types of cover normally include terminal illness cover, which means that 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 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 whole family has enough to worry about without having to stress about meeting mortgage repayments.

Critical illness cover

Critical illness cover is another type of insurance policy that can be added on to either of 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 event that you are diagnosed with a critical illness. If you then go on to recover from critical illness, payout is yours to keep but policy becomes null and void following your claim. The illnesses that are covered by this type of policy are defined by insurer so you should ensure that you check 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 payout of this policy, you will not have 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.

Summary

As indicated by features of two main types of mortgage life insurance cover, policy you go for will depend largely upon type of mortgage you have. Both types of cover offer value for money, with some really low cost deals available. Of course, amount that you pay will ultimately depend upon 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, prospect of it being repossessed in 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 security of knowing that whatever happens they will still have a roof over their heads.

There are a number of different types of whole life insurance policies, and consumers can select one that best fits their needs and their budget. As with other insurance policies, you can tailor-make your whole life insurance cover to include additional cover such as critical illness insurance. The variations on whole life insurance cover include:

Non-profit UK whole life insurance policies: This is simplest form of whole life cover, and enables you to enjoy convenience of level payments through term of policy until you die. Upon death, your family received a payout and policy becomes null and void. If you want to pay a little extra, you can take out a policy that is fixed over a specified term, which means that you will only be making payments for a certain amount of time, but your family will still receive a payout when you die.

With-profit UK whole life insurance: This is a cover and investment type scheme, where your monthly payments are split between your cover premiums and investment side of your policy. You will enjoy a guaranteed assured sum, and you may find that your insurer adds discretionary bonuses.

Low cost UK whole life insurance: One of cheapest forms of whole life cover, this type of policy features a decreasing term plan, and policy is combined with a profits fund. As bonuses are added to profit side of policy, policy term decreases. This provides a cost effective solution for those that want to enjoy benefits of whole life insurance cover without having to make high monthly payments.

Unitised UK whole life insurance policy: When you purchase this type of whole life cover, you will also be investing in with-profit units. This means that when insurer makes a payout, sum awarded will be dependant upon value of units in comparison to value of death benefit (the payout will be based upon whichever is highest in value). Each month units are cancelled in order to increase levels of death benefit cover, with reviews carried out from time to time to ensure adequate levels of death benefit cover.

Summary

Both level term insurance policies and whole life policies offer valuable peace of mind to policyholders. The cost of this type of life cover is a small price to pay for peace of mind that comes with being protected, and you can increase this peace of mind by adding extras such as critical illness to your policy for just a small extra fee.

As a nation, we like to insure just about everything we can…our cars, our homes, our belongings, our pets, and even our credit repayments. It therefore makes sense that we should insure most important thing of all – our lives.