A mortgage protection term life insurance policy with living benefits is designed to provide financial security by covering mortgage payments in the event of the policyholder’s death or Critical illness. This type of policy ensures that the outstanding mortgage balance is paid off, allowing loved ones to remain in the family home without financial strain. Additionally, the living benefits feature allows the policyholder to access up to 80% of the death benefit in case of a qualifying illness, such as a terminal, chronic, critical conditions or Alzheimer’s disease. This flexibility provides essential financial support during challenging times, covering medical expenses or supplementing lost income, thereby offering comprehensive protection and peace of mind.

Here are the details about each:

Terminal Condition

A terminal condition is one where the policyholder is diagnosed with an illness that is expected to result in death within a specified period, usually 12 to 24 months. In such cases, the policyholder can access up to 80% of the death benefit to cover medical expenses, make mortgage payments, or handle other financial needs, providing much-needed financial relief during a difficult time.

Chronic Condition

A chronic condition is defined as an illness or physical state that impairs the policyholder’s ability to perform at least two of the six activities of daily living (ADLs) – bathing, dressing, eating, toileting, transferring, and continence – without substantial assistance, or requiring substantial supervision due to severe cognitive impairment. The policyholder can access a portion of the death benefit to pay for long-term care services, modifications to the home, or other necessary expenses to maintain their quality of life.

Critical Condition

A critical condition includes serious illnesses such as heart attack, stroke, cancer, major organ transplant, kidney failure, or paralysis. Upon diagnosis of a covered critical illness, the policyholder can receive up to 80% of the death benefit to manage medical costs, supplement lost income, or cover mortgage payments and other living expenses. This benefit helps to alleviate financial burdens and allows the policyholder to focus on recovery.

Alzheimer’s Disease

Alzheimer’s disease is a progressive neurological disorder that leads to memory loss, cognitive decline, and the inability to perform daily activities. If a policyholder is diagnosed with Alzheimer’s disease, they can access living benefits to pay for specialized care, home modifications, or other related expenses. This ensures that the individual receives the necessary support and care without depleting their financial resources.

By including these living benefits, mortgage protection term life insurance policies offer a comprehensive safety net, ensuring that policyholders and their families are protected financially in the face of serious health challenges.