Mortgage Protection Renewal

What's the situation with Mortgage Protection Renewal - should my broker send me notice of renewal date & premium?

Premium was just taken from my bank account without any written notice given, is this correct?

househunter1 said:

What's the situation with Mortgage Protection Renewal - should my broker send me notice of renewal date & premium?

Premium was just taken from my bank account without any written notice given, is this correct?

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Mortgage Protection Life Assurance premiums don't change from one year to the next, so there's no need for the "renewal" process which applies to property insurance.

If you signed a Direct Debit Mandate with your application, the premium gets deducted at the agreed frequency on the agreed date. You rarely get a notice with Direct Debits. If you had chosen to pay your premium by monthly direct debit, you would't get a monthly reminder either.

I was planning on switching to a different broker to take advantage of the 1st year free discount i.e. with LA Brokers or Monitum.

Is it possible at this stage to get a refund of the premium and apply through a different broker?

If you are switching to a new provide then you will need to put the new cover (assigned to the lender) in place first and contact the lender about this before cancelling the old policy. When you do cancel the old policy then I believe that any unused premiums that were paid in advance will be refunded although I'm not 100% sure about this.

Thanks for the advice

ClubMan said:

If you are switching to a new provide then you will need to put the new cover (assigned to the lender) in place first and contact the lender about this before cancelling the old policy. When you do cancel the old policy then I believe that any unused premiums that were paid in advance will be refunded although I'm not 100% sure about this.

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Clubman's right - if you pay an annual premium then cancel mid-year, you get a proportionate refund of the unused bit of the year's premium.

I have been doing this for the past few years and is perfectly legal.I change companies in Jan each year ,get the discount and then cancel the old one!! simple but very cost effective