Learn about the life insurance options you can pair with your mortgage

When you subscribe to a Credit, Life, and Home Insurance You can choose between two options:

Purchase life insurance from the bank's affiliated insurance company (which is usually less favorable).

Purchase life insurance through a broker that works with many insurance companies, such as EXS.

Regardless of which company provides your insurance, you should always keep the following points in mind:

1. Roofs

If you choose a plan that covers Total and Permanent Disability, the insurance will only be paid out if the insured person is in a «vegetative state.».

Alternatively, Total and Permanent Disability coverage is more comprehensive, which is why DECO recommends it.

2nd Prize

You need to confirm whether the premium to be paid corresponds to the insured amount you will receive.

3rd Insurance Period

According to DECO, it is advisable to sign up for renewable temporary and annual contracts. This way, the contract is automatically renewed for equal periods until either the Insured or the Insurer terminates it.

4th Safe Capital

You need to confirm the percentage of the principal that is insured under your policy. Sometimes, with bank insurance, only 50% is allocated so that the insured amount is lower; however, you can usually switch insurance providers and get 100% of the principal insured—and even save money in the process.

5. Grace Periods

It is necessary to determine whether there are any waiting periods—that is, whether there is a gap between the policy’s effective date and the date on which the respective coverages take effect. If there is a waiting period, the Insured cannot benefit from the coverage terms associated with the life insurance policy during that period.

6. Exclusions

Life insurance often does not cover certain sports (such as mountaineering, karate, and spearfishing), natural phenomena (such as typhoons, tsunamis, and cyclones), and voluntary acts (such as suicide and self-inflicted mutilation).

7. Installment Payments

We need to analyze the tax implications of installment payments.

8th Grade Physical Exams

We need to determine whether medical exams are waived up to a certain insured amount or up to a certain age group. We also need to determine whether there is a simplified medical exam schedule.

9. Insurance Company or Broker?

Going through an insurance company limits your options, since the company offers a one-size-fits-all solution for all customers. An insurance broker, on the other hand, analyzes the various options available on the market and presents the best solutions for each client, taking into account their age, profession, and even which insurance company is best suited for any pre-existing health conditions they may have.

EXS Mediação de Seguros Lda guarantees the best terms because it compares 26 national insurance companies and recommends the best offer based on your specific situation.

Learn more about Mortgage Life Insurance by requesting a no-obligation quote for your Mortgage Life Insurance.