Mortgage: Do I have to accept the life insurance that the bank imposes on me?
If you are applying for a home loan and come across the requirement to take out life insurance, know that this issue has some nuances. Get to know the current law regarding life insurance for home loans.
Need to just hire life insurance or home credit and don't want to read everything? Contact us now, to help you directly. If you want to know the answer to the most frequently asked questions on this subject: keep reading the article.
Am I required to take out life insurance with the home loan?
When you take out a mortgage, banks require you to also sign up for a life insurance. But the most frequent question that arises is: By law, are you required to subscribe to this insurance when contracting the credit?
The answer is no. By law, it is not mandatory to have a life insurance to be able to contract a housing credit. But if it is possible to take out a mortgage loan without life insurance? Also no. Banks do not allow you to proceed with the housing credit if you are not 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 case of an accident that incapacitates the borrower from earning income and paying the loan, or even in the case of death.
If a customer has a life insurance with coverage for Total and Permanent Disability (IAD), Total and Permanent Disability (ITP), and death, when one of these events occurs and the insurance is activated, the bank receives from the insurer the amount owed on the loan. Therefore, the loan is paid off and the family is free from this burden.
Do I have to get insurance from the bank's insurer?
As a rule, in the proposal that banks initially suggest, you are proposed that the life insurance required with the housing loan be conducted with the insurer associated with the bank. This is because, if you choose to take out insurance within the bank, the banking entity may offer better conditions on the loan, such as a bonus on the spread (one of the loan rates).
However, you should know that, by law, you are not required to get insurance from the bank's insurer. In this case, you cannot even be required to do so.
According to the legislation, the customer can seek the life insurance solution that best suits them. Therefore, they can choose the insurer that offers the best conditions.
However, beware that the bank may alter the conditions of the home credit proposal, if you choose a 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 that you will have to pay for the credit, the amount you will save by taking out life insurance with a different insurer may compensate.
Therefore, always evaluate which scenario is most beneficial before making any decision. Consider factors such as savings, but also your own needs and preferences, as well as those of your family, if applicable.
If you need help on this topic, Poupança no Minuto can support your process in a personalized and free way. Don't worry about bothering us: we are here for that. We make hiring insurance and loans as simple as possible.