When setting up this type of policy, it is usually for a period of years (the term) which is calculated to finish on the final payment of your mortgage. Every month, the amount of cover will decrease as you pay more off your mortgage amount. This type of cover is known as Decreasing Term and the premiums are generally quite low as many policies expire without the Insurer having to pay out. If a payment has been made, it is usually considerably less than the original amount, as much of the mortgage may have been paid off. 

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The other type of mortgage protection is put in place to protect your monthly mortgage payments, should you be unable to work due to accident or sickness. These policies can be set up not only to cover your mortgage payments but also your other living expenses such as food, power, insurance premiums, rates etc. Such cover is usually for 1 – 2 years and will commence after an agreed deferred period which can be anything from 1 day to 3 months. However, the usual deferred period is 14 days. For peace of mind, these easy to set up policies could be ideal for you.