1. Decreasing term life insurance: This type of mortgage cancellation life insurance has a death benefit that decreases over time in line with the outstanding mortgage balance. The premiums are typically lower than level term life insurance policies.
2. Level term life insurance: This type of policy has a fixed death benefit that remains the same throughout the term of the policy. The premiums for level term life insurance are usually higher than decreasing term life insurance policies.
3. Whole life insurance: This is a permanent life insurance policy that provides coverage for the entire life of the policyholder. Whole life insurance policies typically have higher premiums than term life insurance policies but also include a cash value component that can be used for various purposes, such as paying off a mortgage.

Advantages of mortgage cancellation life insurance:

1. Peace of mind: Mortgage cancellation life insurance can provide peace of mind for homeowners, knowing that their mortgage balance will be paid off in the event of their death.
2. Protection for loved ones: By paying off the mortgage balance, mortgage cancellation life insurance can help protect loved ones from financial hardship if the policyholder dies.
3. Flexibility: There are different varieties of mortgage cancellation life insurance policies available, allowing individuals to choose the one that best meets their needs.
4. No medical exam required: Some policies may not require a medical exam for approval, making them a good option for individuals who have pre-existing medical conditions.

Limitations of mortgage cancellation life insurance:

1. Limited coverage: Mortgage cancellation life insurance policies only cover the outstanding mortgage balance and do not provide additional funds for other expenses or liabilities.
2. Premiums can be high: The premiums for mortgage cancellation life insurance policies can be higher than those for traditional term life insurance policies, particularly for whole life insurance policies.
3. Limited payout options: The death benefit for mortgage cancellation life insurance policies is typically paid out in a lump sum, which may not be the best option for all individuals or families.
4. Restrictions on coverage: Some policies may have restrictions on the age of the policyholder or the type of mortgage that can be covered.

In summary, mortgage cancellation life insurance can provide important financial protection for homeowners, but it is important to carefully consider the different varieties of policies available, as well as the advantages and limitations of each, before choosing the right one.