It is getting increasingly more common for people to shop around every year for Mortgage Protection cover. When getting this cover through a broker, the life company involved will usually pay about 120% of the first years premium in commission. This figure varies with each different insurer. The plans are priced by the Life companies on the assumption that the plan stays in force for the duration of the contract (obviously some people need to alter cover and a % lapse will be factored in). With the large costs associated with writing these plans on the Life company's end, it will take at least three years for them to break even. With the relatively recent evolvement of discount brokers, several life companies have reported dramatically increased levels of lapsed policies after year one as a result of this 'loophole', for want of a better word. In my opinion, such models are unsustainable and will inevitably lead to increased premiums as the insurers lose money. Insurers are not in the business of losing money and will eventually take steps to stop such churning. Some people may reject the use of the word 'churning' on the basis that the client is getting a better deal etc, but in reality, with insurers focus now on business quality, this process I believe is an abuse of the current system which will eventually cost the end consumer