Mortgage Protection cover will work out cheaper for you in the short term. While it can be argued that Term Life and Serious Illness cover is a better policy, we all know that many new home owners and especially first time buyers face a lot of bills and every penny can count.
There is nothing to stop you reviewing your situation down the tracks but as the previous poster mentioned you will need to take out a new policy and have it assigned to your lender before cancelling the old one.
The only charge you might face for this was if you received a commission rebate from your broker and you cancelled the policy in the first year, then they may ask for a proportionate amount of the rebate back. Other than that, there should be no charges. You should double check the brokers terms of business letter to confirm this though.