To clear your outstanding mortgage balance (Mortgage Protection) or pay a lump sum if you die (Family Protection).
What is a Mortgage Protection Plan?
Provides a lump sum to help your dependants manage financially if you die.
Potential Optional Benefits
Terminal Illness Cover
This is often included at no extra cost and would pay out the benefits of the plan if you were diagnosed with a terminal illness during the term of the plan (excluding the last 18 months). Terminal Illness is defined as advanced or rapidly progressing incurable illness where, in the opinion of an attending consultant and the insurance companies chief Medical Officer, the life expectancy is no greater than 12 months. After a claim your plan will cease.
Critical IIlness Cover
This benefit is usually taken as an optional benefit to a Mortgage Protection or Family Protection plan. Critical Illness Cover would provide a lump sum benefit on diagnosis of a Critical Illness covered by the policy. The amount of benefit paid would be the same amount as your basic death benefit. After any claim the plan would cease. Apart from the main Critical Illnesses, for example HEART ATTACK, CANCER, STROKE, cover can also be included that may be pertinent to your sporting activities for example TRAUMATIC HEAD INJURY or TOTAL PERMANENT DISABLEMENT.
Not to be confused with Terminal Illness Cover which is usually a free benefit on a Life Insurance policy that simply pays out the death benefit early if you are diagnosed not to survive longer than 12 months.