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The Basics Your Options Risk Factors Your options There are generally two two types of mortgage life insurance: Mortgage Term Assurance and Mortgage Decreasing Term Assurance. Mortgage level term means the amount you are insured for remains the same throughout the term of your policy, unless you choose Indexation or exercise your Guaranteed Insurability Option. Mortgage decreasing term means the amount decreases over the term of the policy. This cover is designed to protect a repayment mortgage, so that the amount of insurance decreases roughly in line with your remaining mortgage debt.
Both types of mortgage life insurance can include Terminal Illness Cover at no extra cost. Read more about Terminal Illness Cover. Extra cover options Sometimes you can choose to add these options to your Mortgage Term or Mortgage Decreasing Term Assurance policy: Critical Illness Cover This pays out a lump sum if you are diagnosed with one of the specified illnesses or disabilities and are eligible to claim. Cover for your children is often included at no extra charge. Of course, there are terms and conditions and you should ensure you've read and understood them. Particularly the providers list of specific illnesses covered.
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