Common Mistakes When Purchasing Life Insurance for a Mortgage

40 euros for mortgage life insurance versus 150,000 euros (hypothetical figures). The huge difference makes it easy to downplay the insurance premium. This is a mistake, because over the course of the first year, the 40 euros turned into 480 euros.

Amid all the red tape involved in financing, and to ensure you don’t feel uncertain when signing (yet another) policy, avoid the following mistakes and limiting beliefs.

About to take out mortgage life insurance? Don't make these mistakes

Focusing only on the price (it could end up costing you)

The price is affordable, and the promises of protection are endless.

He ends up taking out a policy without reading the general, special, and specific terms and conditions.

For a few months or years, you believe you’re saving money. But imagine the following scenario:

• You have a serious accident that leaves you severely disabled, unable to return to work and earn an income;
• He still has half of his mortgage left to pay.

Despite this incident, it went ahead as planned insurance through a specialized institution, credible, and sought advice from experienced consultants, you can be sure your loan will be paid off.

Why?

Because they explained to him the difference between ITP (Total and Permanent Disability) and IAD (Absolute and Permanent Disability).

Despite this misfortune, he is able to ensure his family’s financial stability and future—without having to be in a “vegetative state” to receive compensation.

If, on the other hand, you looked only at the price and find that ITP isn't included, you may have a problem.

Believing that the insurance premium always stays the same

First of all, include the insurance premium in your family budget, under monthly and/or annual expenses. Calculate your debt-to-income ratio so you aren’t caught off guard.

And stay alert.

The initial value may be minimal. However, it tends to increase over the term of the policy.

This expense increases because it is related to age, outstanding principal, the policyholders' health status, and other factors.

Essentially, this means that the bank takes on more risk because it increases the likelihood that you will die or experience health problems associated with aging—and fail to repay the loan.

Solution? Increase the value of your side.

Don't feel “locked in” to an insurance policy just because you took out a loan at that bank:

• Renegotiate your life insurance policy while keeping the same terms;
• Or request a transfer of your insurance.

Don't compare offers, and don't switch or transfer your mortgage insurance because… it's a hassle

The bank makes an offer, and you accept it. Are you tired of all the red tape and waiting for your loan to be approved?.

In some cases, it takes months to get the go-ahead. This includes submitting the documentation, pre-approval of the loan, the property appraisal, and many other steps and associated documents.

He ends up accepting without negotiating.

What if we told you that you could save up to 60% on your mortgage insurance?

Did you know that the savings you realize when you transfer or purchase an insurance policy outside the bank can cover, for example, up to half a year’s worth of monthly payments?

It is true that the process of evaluating and studying proposals is exhaustive. And not everyone has the mental capacity or the time to conduct market research.

Because not to delegate this task to a female mediator, such as EXS?

The service is free of charge for you, and the law allows it. That way, you'll have the best of both worlds:

• A life insurance policy for your mortgage with coverage tailored to you, your family, and your shared needs;
• An affordable premium that doesn't strain the family budget.

You are not required to purchase insurance from the bank. In most cases, this does not result in a higher spread.

Exclude essential coverage

Please keep in mind that the interests of banks and other institutions do not always align with your own.

On the other hand, trading on your own isn't as advantageous, because you don't have a good grasp of the technical jargon, concepts, and profit margins of insurance companies.

If you do not wish to contact a mediator, please keep the following in mind and always check:

• Coverage and exclusions;
• Franchises, if any;
• Safe Capital;
• Premium amount.

EXS's offers are more affordable because they are the result of an effort involving evaluation, negotiation, and collaboration with long-standing insurance partners.

It's different from low-cost mortgage life insurance because, in fact, it lacks the essential coverage that provides a safety net.

How much does mortgage life insurance cost with EXS Seguros?

Housing expenses (which include loans, insurance, water, electricity, and gas) account for 18% of the household budget. This is clearly the largest expense, followed by transportation and food costs.

Since you cannot change this situation, you have the option of reducing some of your payments—such as the life insurance premium for your mortgage.

It's quick and easy to find out how much insurance costs with EXS. Just run a free, no-obligation quote.

Then, simply compare what you’re currently paying with our best offer—selected from a range of 26 insurance companies.

Most customers are surprised by the reduction (which can be as high as 60%).