This is where a Term Life policy is use as a way of protecting the family if a person dies with the loan not fully paid back. It is not Income Protection as it only pays out on death or terminal illness.
Much better to have a term life cover with a large enough sum assured to pay outstanding loans and other items.
Most policies called Loan Protection or Mortgage Protection do not have to be used for this purpose. For this reason we have profiled these covers within Term Life
