Did you know that you're not required to have home life insurance through the bank?

Renegotiate or switch—these are the two options that banks don’t disclose to their customers, but which can save you hundreds or even thousands of euros on your mortgage life insurance.

It’s normal to be concerned about the spread and Euribor rates, since these are two variables that can directly affect your monthly payment. However, there are several solutions where this isn’t the case.

If you're thinking about applying for a mortgage or already have one and want to lower your payments, read this article and find out how much you can save.

What Your Bank Doesn't Tell You About Home Life Insurance

By law, you are not required to purchase the mortgage life insurance required by the bank.

Decree-Law No. 222/2009 establishes a set of rules that prevent banking institutions from requiring customers to purchase insurance from the insurers with which they have partnerships.

“(…) interested parties have the right to choose to purchase life insurance from the insurance company of their choice (…).”

Unexpected events happen. Having an emergency plan ensures that, in the event of death or disabling disability, both the banks and the policyholders are protected.

In these situations, the coverage is triggered and the outstanding credit balance is settled.

Banks' Mortgage Life Insurance: The Decision

Banks require borrowers to purchase insurance at the time the loan is taken out, but there is no obligation to purchase the insurance offered by the bank.

Transferring your insurance policy may give you more favorable terms, such as:

— Reduction in the premium to be paid;
— Possible expansion of coverage and reduction of exclusions.

Benefits of Mortgage Life Insurance Separate from the Loan

The premium amount should decrease as the outstanding balance is paid off. However, age is also a factor. With each passing year, the risk of death increases, so the monthly premium goes up.

You might start out paying €40, and after a few years, you could be paying double that amount—or even more.

With EXS, until the end of your mortgage term, you can save up to 60% of the amount you currently pay.

Let's take a look at a simulation of the savings amount.

Example of Savings on Mortgage Insurance

You're currently paying €80 per month for your mortgage life insurance. Assuming you can get a maximum reduction of 60%, your monthly payment would drop to €32.

• With the old mortgage insurance: 100€ x 12 months = 960€ per year
• With EXS's new mortgage insurance: 40€ x 12 months = 384€ per year
• Annual savings: 576€

EXS Seguros customers save, on average, €500 per year, in addition to having life insurance tailored to their profile and that of their family.

But the question arises: what about the widening of the spread?

Losing the discount is the primary concern when transferring insurance. To make their products more attractive, banks tend to reduce the spread on mortgage loans indexed to the loan.

However, even if interest rates rise, the reduction in the premium more than makes up for it in most cases.

What You Should Know Before Transferring Your Mortgage Life Insurance

He did the math, reread the contract, and realized he could save money.

First and foremost, it is important to comply with the terms of the contract to avoid penalties:

• Comply with notice periods;
• Notify us in writing of your intention to cancel and transfer;
• Analyze and compare coverage, exclusions, and benefits;
• Check for possible penalties.

This whole process takes time.

Insurance brokers are the answer. In addition to analyzing the best options on the market, they tailor their recommendations to the client’s needs.

Count on EXS and get the best terms

Mediators have access to specialized channels and key contacts within the network.

EXS has the best price because it compares quotes from 26 insurance companies.

Does this mean that it looks for the best simulations based on:

• Conditions required by the bank where the mortgage was applied for;
• Tailored to the client's profile.

EXS Seguros handles the entire analysis and comparison process. If you switch insurance providers now, you’ll save thousands of euros by the end of your contract—with minimal effort and maximum convenience.

Getting insurance from a provider other than your bank is more advantageous. Learn about EXS's mortgage insurance plan.