Steps to Take Before Switching Your Mortgage Protection Insurance Provider

What Is Mortgage Protection Insurance (MPI)?

Mortgage Protection Insurance is a type of life cover designed to pay off an individual’s outstanding mortgage amount should they pass away during the term of the policy. It is often required by mortgage providers as a condition of your mortgage approval. A mortgage protection policy provides peace of mind for both you and your lender, in the event of the death of the life insured / borrower by repaying the outstanding balance on the mortgage, thereby securing the ownership of the family home / property for your family.

1. Understand Your Current Policy

Before making any changes, review the terms and benefits of your existing policy. Key areas to focus on include:

• Costs: Compare what you currently pay with quotes from other providers.
• Cover: Assess the benefits, exclusions, and additional features of your current policy against those provided by other providers.
• Cancellation Terms: Check for any penalties or fees that apply, if you terminate your policy early. 

Our Expert’s Tip: Understanding the levels of cover and benefits of your current policy is crucial to determining if switching is the right decision.

2. Compare Quotes & Benefits from Multiple Providers

Researching the market is essential to finding a policy that offers better value. When comparing quotes, consider:

• Costs: Look for lower premiums that still provide adequate coverage.
• Benefits: Check for features like digital GP services, second medical opinions, mental health support and accidental death benefits.
• Flexibility: Ensure the new policy allows for adjustments, such as increasing coverage if needed.

Pro Tip: Use online tools or speak to a financial advisor to compare options quickly and efficiently.

3. Assess Your Health and Medical History

Your health and lifestyle play a significant role in determining your MPI cost. If you’ve developed any health conditions since taking out your existing policy, it’s important to:

• Check Eligibility: Ensure new providers won’t decline your application due to pre-existing conditions. A new policy is subject to the acceptance criteria of the new insurer. 
• Understand Rating Impacts: Be aware that some conditions might increase your premiums.
• Prepare Medical Records: Have documentation ready to speed up the underwriting process.

Our Expert’s tip: Under new underwriting guidelines, insurers will review applications for people who had a previous cancer diagnosis. The guidelines provide for a cancer survivors’ ‘Right to be Forgotten’, meaning insurers will disregard a cancer diagnosis where treatment ended more than 7 years prior to their application or more than 5 years if the applicant was under 18 at the time treatment ceased.  However, any application is subject to the individual insurers acceptance criteria.

4. Don’t Cancel Your Existing Policy Prematurely

One of the most common mistakes is cancelling an existing policy before the new one is fully active. To avoid this:

• Wait for Approval: Ensure the new policy is finalised and has a confirmed start date.
• Ensure you are ‘On Cover’ – get confirmation to say your policy / cover is live & in force. Make sure the first premium has been paid.
• Avoid Coverage Gaps: Maintain continuous coverage to protect yourself and meet lender requirements.

Our Expert’s Tip: Never cancel your policy until you know the new one is in place. 

5. Consider Changes in Your Mortgage and Coverage Needs

As you repay your mortgage, the outstanding balance will reduce, so your coverage requirements may decrease. Before switching providers:

• Reassess Cover Amounts: Adjust your policy to match your remaining mortgage balance.
• Evaluate Term Length: Ensure the new policy’s term aligns with the remaining years on your mortgage.
• Think About Extra Benefits: Decide if you need additional benefits, like critical illness coverage or guaranteed insurability options.

6. Communicate with Your Lender

Your lender may need to approve any changes to your Mortgage Protection policy. Steps to take include:

• Notify Your Lender: Inform them about your intention to switch providers.
• Provide Documentation: Share details of the new policy to confirm it meets their requirements.
• Clarify Assignments: Ensure the new policy is assigned to your lender to satisfy their conditions.

7. Research Alternative Benefits and Discounts

Switching providers can also introduce new perks. Many insurers offer additional benefits, such as:

• Discounts: Mortgage Protection Insurance with a new provider may provide access to discounts on other policies.
• Digital Tools: Access apps for policy management or health consultations.
• Family Support Services: Look for policies that extend benefits to family members.

Did you know? Aviva’s policies include benefits like Digital GP services, second medical opinions, and mental health support.

8. Be Prepared for Medical Underwriting

Switching providers usually requires an applicant to go through the underwriting process, to assess if the insurer will provide a life cover policy. Here's how to help this move along quickly:

• Submit Accurate Information: Provide complete and accurate details in your application.
• Follow Up on Requests: Ensure your GP or other medical professionals respond promptly to information requests.
• Start Early: Begin the process as soon as possible to avoid delays that could affect your mortgage timeline, if you are taking out a new mortgage.

9. Know Your Rights if Declined

If you are taking our Mortgage Protection Insurance for the first time, and a new provider declines your application, don’t panic. You should consider:

• Three Declines Rule: After three declines, approach your mortgage provider and advise them of the three declines. Your mortgage provider may waive their Mortgage Protection Insurance requirement.  Talk to them and seek their help. 
• Specialist Providers: Seek advice from an insurance broker who handle non-standard insurance cases.
• Appeals: Challenge the decision if you believe it was made in error.

10. Make an Informed Decision

Switching Mortgage Protection Insurance providers is a big decision, so take the time to weigh up your options carefully. Make sure you:

• Compare Costs and Benefits: Find the policy that offers the best value for your needs.
• Maintain Continuous Coverage: Make sure to maintain your existing policy until the new one is in place.
• Act Early: Start the process well in advance to avoid unnecessary time delays & stress.

Our Expert’s advice: A little research and preparation go a long way in ensuring a seamless switch.

Switching your Mortgage Protection Insurance provider can lead to better coverage and savings, but it requires careful planning. By following these steps and seeking expert advice, you can make a smooth transition while safeguarding your financial security. 

Ready to explore your options? Learn more about Aviva’s Mortgage Protection Insurance and the additional benefits on offer that can provide peace of mind for you and your family.

Switching Mortgage Protection Insurance FAQs

1. Can I switch Mortgage Protection Insurance providers at any time?

Yes, but ensure your new policy is active before cancelling your current one. 

2. Will my premiums increase with a new provider?

Not necessarily. Compare quotes and consider your health status to find the best deal.

3. Do I need my lender’s approval to switch providers?

Yes, your lender must confirm that the new policy meets their requirements.

4. What happens if I’m declined by a new provider?

You can appeal, seek specialist advice, or rely on the Three Declines Rule to discuss your options with your mortgage provider.