do i need a 2nd mortgage protection policy for top up loan?

[Bollo]

Hi

just wondering if someone could help me, we are getting a top up on our mortgage and were told that we need to take out a seperate mortgage protection policy, is this correct? cant we just increase the value of our current mortgage protection policy?

any help would be great thanks

 

[LDFerguson]

If your existing policy is a Mortgage Protection (Decreasing Term Assurance) then it's likely that you won't be able to simply top it up. Check this with the life assurance company.

You've two choices - (1) get a new policy for just the top-up amount or (2) cancel the original policy and start a new one to cover the total lending (i.e. original mortgage and top-up). Get prices for both and compare. Don't forget to shop around - your original Mortgage Protection life assurance company may or may not still be the most competitive.