Answered by Andrew Jenkinson
Yes, it is usually possible to change mortgage insurance provider at any time. Over time different insurers can come out more competitive than others so it makes sense to consider changing insurer from time to time.
Switching insurer can save you money
Drewberry Insurance reviews the cover and premiums for our clients every year to ensure they are still the most competitively priced given the clients requirements and suggest a change of provider if worthwhile. We provide these services as standard for both mortgage life insurance and mortgage payment protection.
It is usually necessary to provide an existing provider with 30 days notice before cancelling your cover and direct debit. It is also important not to cancel existing cover before new insurance is in place. If your health has changed at all since taking out cover you should speak to an adviser.
For more information please see the guide: Switching mortgage insurance provider
Getting over-charged – Change insurance from a bank
Changing new clients cover away from bank provided insurance is very common as the monthly premiums charged by banks is sometimes as much as 100 per cent higher than fair market price.
In the past banks sometimes used to bundle the insurance premiums into the mortgage cost, so only a single premium is paid each month. It is important to note that there is sometimes a penalty to separate out the insurance from the mortgage but it is usually the case that separation (plus penalty) is still cheaper.
If this applies to you then it is worth speaking to your bank to find out if a penalty would apply and, if so, how much the penalty would be so you can compare the benefits of switching to more competitively priced cover.
Frequently Asked Mortgage Protection Insurance Questions
Very easy to deal with. Adviser was knowledgeable and clear about options. It was a pleasure to use this broker and I would happily recommend to others.
I feel very grateful to have found Drewberry to help me find the kind of policy I needed. I have received an excellent level of service from Rauri who I would recommend highly, and Danielle, who is part of Rauri's team.
Really helpful, explained everything clearly, explored different options thoroughly and efficient communication. Would definitely recommend.