What is mortgage critical illness insurance ?
Mortgage Protection Term Cover works in a very similar to Level Term Cover. The way in which it differs itself from Level Term Cover is in the means by which the benefit is paid. Typically this means that the benefit amount reduces at the same rate as the capital does on any repayment mortgage at a typical rate eight percent per annum.
There is also Family Income Benefit Cover, which again differs in terms of how the benefit is paid. This time it means that instead of receiving a lump sum or a reduced lump sum at the time of a critical illness, the benefit instead pays on a annual basis for every year that the policy remains once a claim has been accepted.
Finally the other option is Renewable Term Cover, where every five or ten years the fixed lump sum is reviewed dependent on the option chosen when first agreed. Premiums for this type of cover can increase or decrease at the point of renewal, this can change due to premium rates at that particular moment in time and they do need any further medical evidence. The provider can opt to cease the policy if they no longer provide the particular cover required, also, the cover cannot take you past your seventieth birthday.
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