Policies vary but typically protect the remaining balance on your home loan at death, often irrespective of terminal illness or suicide. Some offer a minimum payout that protects the interest-only while others guarantee not just a set amount but any outstanding balance at time of claim. If you have a dependant who isn't a spouse or child, such as a parent or sibling who relies on you for financial support then you may be able to include them as a beneficiary.

Mortgage life insurance can be either term-based (i.e. it covers your mortgage until the end of the term) or whole of life (the policy is active from the day you take out cover and remains in force even after you've completely repaid your loan). It's normally available as an individual plan but some insurers offer 'joint' policies which cover two people such as married couples or civil partners. Although it doesn't usually cover debt consolidation loans, legacy mortgages and interest only mortgages with no capital repayment, some plans will pay out if your family just cannot afford full repayment immediately after your death.

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