Is it possible to change the life insurance linked to the mortgage? 

You can change or cancel your life insurance whenever you want. All you need to do is notify the insurer in writing one month in advance. Remember that if you cancel the insurance, you are likely to lose the mortgage bonus. We explain it to you…

You may have wondered more than once if life insurance associated with home purchases and linked to mortgages is mandatory, or if it must be contracted with the bank, among other questions. You may have asked yourself this because when you go to buy a home, the first thing they try to sell you is life insurance, once the mortgage is approved. Banks make a lot of money with these life insurance policies because, statistically, it is unlikely that misfortunes will happen. Thanks to statistics, the bank makes a lot of money.

Let’s get into the subject. Mortgage life insurance is a policy that protects your family in case of death or disability, ensuring the payment of the debt to the bank. In short, it is a financial lifeline that prevents your family from being left with an unpaid mortgage.

Is it mandatory to take out this insurance?

No! Since 2019, thanks to the new mortgage law, banks can no longer force you to take out this type of insurance. However, many entities offer interest rate bonuses on the mortgage if you purchase one of their insurance products.

Can I change or cancel my mortgage life insurance?

Of course you can. You can change or cancel the life insurance whenever you want. All you need to do is notify the insurer in writing one month in advance. Remember that if you cancel the insurance, you are likely to lose the mortgage bonus.

What if I want to cancel the insurance and the bank prevents me from doing so?

If the bank tries to force you to keep the insurance, you have the right to complain. The law protects you and does not allow financial institutions to impose abusive conditions.

Is it cheaper to take out life insurance with the bank?

The answer is not always. Often, life insurance offered by banks is more expensive than that of other insurers. We recommend comparing prices and coverage before making a decision. Perhaps an insurance comparator can help. Still, it is also important to assess the coverage.

In summary

• There is no obligation for life insurance
• Flexibility: You can change insurers whenever you want
• Compare: It is best to compare prices, but also coverage. Sometimes cheap can be expensive.
• Defend your rights: If the bank pressures you, we can put a stop to it.