life insurance level term?

[shoopy213@yahoo.co.uk]

i have bought my partner out of house and now have the mortgage on my own ,i have been looking at level term life insurance for 200k .what happens if i die ,who makes sure where the money goes?? also there is a terminal illness cover with the policy ?? do different companies have different illnesses cover ,are they strictly governed?? any advice please

[Fonejacker]

There are two questions here.
Level term cover for 200k will pay out if you die within the term. I.E. It does not decrease in sum insured as your mortgage gets paid off. That is decreasing term. The bank will have their interest noted on the policy. IF you croak, the claims dept of the insurer will settle the banks interest first and any balance is paid to your estate to be dealt with by your executor as per your instructions.
Terminal or Critical illness cover is different. There will be a list of the illnesses covered and if you develop one you will be paid. These policies are MUCH more tricky as there are several levels of cover. If it is tied to life cover it is probably the most basic. IE If the illness is on the list, you get paid but it is worth reading the terms to familiarise yourself. The person who sold it to you has a legal duty to ensure you understand the extent of the cover.

xxFJ