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 can 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 died 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.