Do I have to accept the life insurance that the bank imposes on me for mortgage loans?
If you are taking out a mortgage and come across the requirement to subscribe to life insurance, know that this issue has some nuances. Get to know the current law regarding the life insurance of mortgage credit.
Just need to hire life insurance or mortgage credit and don't want to read everything? Contact us now, to help you directly. If you want to know the answers to the most frequently asked questions on this topic: keep reading the article.
Am I required to purchase life insurance with the home loan?
When hiring a home loan, banks require the subscription of a life insurance. But the most common question is: By law, are you required to subscribe to this insurance when hiring the loan?
The answer is no. By law, it is not mandatory to have life insurance to be able to take out a mortgage. But is it possible to get a mortgage without life insurance? Also no. Banks do not allow you to proceed with a mortgage unless you are protected by this insurance.
In other words, the correct word would be: insurance is required, not mandatory. And why? Because it is a way for banking institutions to protect themselves from the risk of default by customers, in the event of an accident that incapacitates the borrower from earning income and paying off the loan, or even in the event of death.
If a client has a life insurance with coverage for Total and Permanent Disability (TPD), Absolut and Permanent Disability (TPD), and death, in the event of any of these claims and the insurance is activated, the bank receives from the insurer the amount owed on the loan. Thus, the loan is paid off and the family is free from this burden.
Do I have to get insurance from the bank's insurance company?
As a rule, in the proposal that banks suggest initially, you are proposed that the life insurance required with the housing credit be carried out with the insurer associated with the bank. This is because, if you choose to do the insurance within the bank, the bank entity can offer better conditions on credit, such as a bonus on the spread (one of the loan rates).
However, you should know that, by law, you are not required to buy insurance from the bank's insurance company. In this case, you cannot even be demanded to do so.
According to the law, the customer can seek the life insurance solution that best suits them. Therefore, they can choose the insurance company that presents the best conditions.
However, note that the bank may change the conditions of the mortgage credit proposal if you choose life insurance from another insurer.
In this case, you should always do the math: even if the bank penalizes the value of the spread, increasing the monthly installment you will be paying for the credit, the amount you will save by hiring life insurance from a different insurer may compensate.
Therefore, always evaluate which scenario is most rewarding before making any decisions. Consider factors such as savings, but also your needs and preferences, as well as those of the family unit, if applicable.
If you need help on this topic, Poupança no Minuto can follow your process in a personalized and free way. Don't worry about bothering: we are here for that. We make hiring insurance and credits as simple as possible.