Life Insurance Linked to a Mortgage with EXS

Decree-Law No. 222/2009 stipulates that the policyholder may purchase a policy from another company that is not affiliated with the lending bank. Therefore, it is important to consult brokers, such as EXS, to review a wide range of alternatives available on the market and determine which one offers the greatest savings. By doing so, customers can save more than the 50%.

However, either out of ignorance or to save time, many consumers tend to pay excessive premiums for this insurance by purchasing the policy offered by the insurance company affiliated with the bank where they took out the loan. Even so, it is possible to Save on Life Insurance:

• You can choose to bundle this plan with other insurance policies. This way, you can save on the total cost and, more specifically, on your life insurance premium. Although it varies from case to case, savings of between 30% and 40% are common. Some consumers even save more than 50%.
• You can choose to switch your policy to another company that offers you better benefits—particularly in terms of the premium you pay—after researching and comparing the various options on the market, with the help of brokers such as EXS.

This decision is covered by Article 4 of the Decree-Law No. 222/2009, which allows for the free choice of coverage type and grants the Policyholder the right to be informed of this freedom, although the new insurance policy must comply with the requirements set forth in the contract with the Bank.

In some cases, monthly savings can amount to significant sums, especially among older age groups. Over the course of 30 to 40 years, it is possible to save more than 20,000 euros, which is greater than any potential increase in the spread (a penalty that must be specified in the contract with the bank).

If you want to transfer your life insurance policy, pay close attention to the coverage. DECO (the Portuguese Association for Consumer Protection) recommends purchasing coverage for Total and Permanent Disability, which covers other claims in addition to those resulting in a «vegetative state.».