1. Term Life Assurance (Insurance) can be set up to cover the mortgage if the borrower dies before paying off the amount in full. There are typically two types: the yearly renewable policy and the level premium policy. The yearly renewable has a premium that rises as the insured gets older. The level policy premium stays the same for a specified time limit (usually block of 10, 15, 20 or more years).

2. Mortgage payment protection is set up to pay the mortgage payments if you can't work due to sickness, unemployment, or even an accident. It can cover up to 52 weeks of payments ensuring that your home is secure for a full year, although most only cover about 36 weeks.

Mortgage protection can be more than just an insurance policy that will pay if something unexpected should happen. The best thing you can do is to save money and have six months worth of your current income in an emergency fund. Not only will you have protection against unfortunate events - should they arise - but you will be earning interest on the money.

Buying a home is a large investment. There are many ways to protect yourself and your family and to guarantee them a home no matter what you might face in the future. Mortgage protection can be in the form of an insurance policy or protection plan, or it can be in the form of penny pinching and saving. Either way, you are sure to sleep better knowing the mortgage is managed.

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