Tips on How to Transfer Life Insurance on a Mortgage

Did you know that you can change the life insurance and mortgage insurance at any time, and that, in most cases, this decision won’t widen your spread? By researching the market, you can reduce your mortgage life insurance premiums by up to 60% compared to what you’re currently paying.

If you're thinking about transferring the life insurance and mortgage insurance It's because you're not satisfied with your current plan. In three steps, we'll explain everything you need to know to switch insurance providers.

1. Review the terms you agreed upon with the bank when you applied for the mortgage

Some banks include a spread penalty in the contract in the event of a transfer of the life insurance and mortgage insurance. However, the increase in the spread is generally less than the savings from the insurance.

Most banks do not require customers to purchase insurance from their own insurance company, so there is no penalty in the interest rate spread if you want to save money on your life insurance.

2. Review your policy to find out what your current life insurance covers

The basic coverage only includes protection for Total and Permanent Disability (where the insurance can only be claimed if you are in a “vegetative state”). DECO (Portuguese Association for Consumer Protection) recommends broader coverage that includes Total and Permanent Disability. On EXS, you can compare other supplemental coverage options and run a simulation how much you can save when transferring your current insurance (regardless of the type).

3. Notify the bank of the cancellation of your mortgage life insurance

To formally cancel the service, you must provide 30 days’ advance notice, effective as of the start date of your new insurance policy, by registered letter with acknowledgment of receipt. Once you have your new policy, you must also forward it to your bank. This does not exempt you from carefully reading the general terms and conditions of your insurance contract.

At EXS, we review your case and handle the paperwork at no cost to you.