In most cases it is possible to save on mortgage life insurance.
These are some of the procedures you can use to reduce your costs.
Update the insured capital as the debt decreases. By law (Decree-Law No. 222/2009), the bank must inform the insurer of the evolution of payments in order to adjust the insured capital—and consequently, the premium—as the loan is amortized.
Compare and switch insurance providers — you don’t have to stay with your bank.
You have complete freedom to take out life insurance with another insurer, regardless of where you obtained the loan. Often, banks offer a lower spread to those who take out insurance with them, but the savings with an external policy can be substantially greater.
Evaluate the cost-benefit ratio of the lower spread.
Some users report that, although external insurance is cheaper, the increase in the spread can raise the total cost of the loan. Do the math: does the higher spread offset the lower premium in the long run?
Review the coverages you have contracted.
Simpler insurance policies (for example: death + permanent total disability) are cheaper, but less comprehensive. Choose what you really need, balancing protection and cost.
Take advantage of discounts and payment options.
Paying via direct debit, choosing digital documentation, or paying the premium in one lump sum can generate discounts..
Group your insurance policies.
Consolidating several insurance policies with the same insurer (such as multi-risk, life, and auto insurance) can result in aggregate discounts.
Evaluate the cost over the entire contract period.
Many analyses focus only on the first year’s premium, but it’s worth comparing the total cost over the entire loan term.
Ask us for a free simulation.
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