If you are topping up your mortgage, you could get a new mortgage protection policy for the total amount of your new mortgage, or just for the top-up amount. Compare the costs and benefits of both options. It may be cheaper to keep your original mortgage protection policy going, and buy another policy for the top-up amount. But check what it would cost you to cancel the original policy and replace it with a policy for the full amount of the new mortgage.

Whether you are topping up your mortgage or extending the term and need to get a new policy, you may find that your premium is higher than the last time you took out cover. This is because you are older and your age affects your premium. However, if you have given up smoking, or if rates have come down since the last time you applied for cover, you may be able to get cheaper cover.

It is worth shopping around to see which provider gives the best value – use our life insurance cost comparison to help you.

If you switch your mortgage, your options depend on whether you have your own policy or a group policy through your lender.

If you have your own policy, you can simply transfer it to your new lender. The premium and level of cover will be the same as before, as long the amount you borrow and the term of your mortgage does not change.

If you have a policy through your lender’s group scheme, your lender will cancel the policy when you switch your mortgage. So, you will have to apply for cover again and it may cost you more, as you will be older than when you first took out the policy. And if you are not in good health, you will have to pay a higher premium or you may not be able to get cover at all. Before you switch your mortgage, make sure that you can get mortgage protection insurance if your current mortgage protection is through your lender’s scheme.

If you pay off your mortgage earlier than planned, you can:

• cancel your mortgage protection coverand pay no further premiums or
• Keep the policy and pay premiums until the original end date.

If you decide to cancel the mortgage protection cover, always check with the insurance company that the policy has been cancelled. Where the policy has been arranged through your lender, your lender will cancel the mortgage protection policy on your behalf but you may want to check to make sure. If the policy has not been cancelled by your lender, ask the insurance company what your lender needs to do to ensure the policy is cancelled and no more premiums are collected from you. Also make sure that if you have been paying premiums by direct debit, that you cancel the direct debit in writing.

If you pay off your mortgage earlier than planned, it is a good time to consider whether you need additional life insurance. If you decide to keep your existing policy, it would no longer need to be used to clear your mortgage. So any benefit would be paid to your dependents if you died before the policy finished. This could be a useful source of extra life cover. On the other hand, you may decide to take out new life insurance, depending on your age and state of health.

You may not have this option of keeping your mortgage protection policy if it was taken out through a group policy with your lender, as they will usually close off the policy when your mortgage is cleared.

A number of areas are covered by mortgage protection plans. However, people can have the option to pick whichever the type and level of the mortgage protection plans you might need may it be on accidents, on illnesses, and for unemployment covers. If ever you encounter life threatening diseases and the likes or if you experienced some laying off at work, having a mortgage insurance plans or covers can assist you with these types of needs. With the mortgage protection cover, your monthly expenses and possibly some other related payments such as insurance premiums for your home are covered so should the worse happen, you can clear you mind of with worries should anything bad happen to you.

Another thing is that you also choose the type of monthly cover you need and you pay your premium as soon as the due date turns up. Once a set period of 12 months is done normally, most mortgage payment protection covers and insurance plans stop paying out but there are some however that makes payments for an even shorter period of time like even six months to be exact. Mortgage insurance plans are really important. Once you get to have your own mortgage insurance cover, you are very much sure that you are safe and that there will be no worries should you meet any unfortunate situations.

Compared to any other type of insurance covers there are premiums you need to pay when you decide to avail of a mortgage protection cover. The expenses of the insurance plan are expressed as a rate per £100 of monthly benefit and also consist of premium tax cover. The prices of the monthly insurance policy you need as well as the type of insurance policy you select are the two important factors which may determine your cover expenditures.

Given that mortgage insurance plans or covers are very important, there are certain criteria to be able acquire mortgage protection insurance covers. To be able to have one, one must be 18 years old because this is the universally known legal age. However, on should not exceed the age of 65 to be able to acquire one. Another criterion to get a mortgage insurance policy is that if you are a permanent resident and working within the UK, Isle of Man or Channel Islands and also qualify to receive jobseeker’s allowance. A person is eligible to acquire mortgage protection covers if you are availing of the Mortgage Payment Protection insurance cover in order to guard the mortgage on the personal housing property you currently are living in. Another important criterion is that you should be employed to be able to acquire this insurance cover.

For most people, it is not that easy to understand mortgage covers as it comes with a mass of stipulations but it is something you absolutely need to have an excellent grasp of before you avail so that you know what are covered and what are not on your mortgage protection policy.