12 JAN 2021
Until recently, when you applied for a mortgage, the bank obliged you to take out a specific life insurance policy, which conditioned the granting of the mortgage loan. Did you know that these insurance policies have higher rates than those usually offered by the market? For this reason, you end up paying a higher price than those offered through other channels, such as Insurance Brokers and Mediators.
With the new Mortgage Law, in force since June 2019, this practice was eliminated. Therefore, banks must offer their customers other alternatives, in addition to allowing the customer to take out the policy on their own and present it to the bank. 
Thinking of those people who want to pay less for their mortgage life insurance, CINC Correduría de Seguros offers you Vida Riesgo Hipotecas. This is a specific life insurance policy to cover the capital outstanding on the mortgage in the event of premature death or permanent disability. In this way, you will pay a price adjusted to the real debt you have at any given moment. 
Do you want to know how much you could save?

What is Mortgage Life Risk insurance and why does it allow you to save money?

It is a type of insurance that automatically reduces the capital contracted annually with respect to the capital amortised to the bank. In this way, you only pay for the debt, as the policy is only increased each year by age bracket and is reduced by the outstanding capital. Therefore, this modality guarantees you pay less for your mortgage insurance than the one you have taken out or is offered by your financial institution. 

How is the price of Life Risk Mortgage insurance calculated?

The price of the insurance is recalculated downwards each year with a new insured capital, which due to the amortisation of the mortgage debt will be proportionally lower than the initial one. Once the new premium has been obtained for the new reduced capital, it is recalculated taking into account the age of the insured in each year of the insurance, guaranteeing you a very stable premium during the whole period of the contract. Moreover, as it is calculated each year by the new capital of the outstanding debt, you do not pay an excess premium.
If you want to leave assets in excess of the debt, we advise you to take out a life insurance policy with fixed capital, as the Vida Riesgo Hipoteca insurance policy is designed to cover your obligations to the bank. Contact us and we will advise you on the best option. 

What guarantees does the Mortgage Risk Life insurance cover?

  • Main guarantee: Death capital
  • Additional guarantee: Management service in the event of death. 
  • Complementary guarantee: Absolute and Permanent Disability.


What amount of capital can be insured initially?


The Death Capital Sum Insured must be the capital received for the loan, with each annuity being able to be adapted to the capital pending repayment by applying the different types of capital decreases foreseen (linear, cumulative or irregular).

Who is the beneficiary of the insurance?

Given that the objective of the policy is to cover the lack of payment of the outstanding debt due to death or absolute permanent disability, the first beneficiary is the entity for the outstanding amount in the event of a claim, which in turn also provides advantages in terms of inheritance as it does not increase the estate for life insurance payments. If there is capital left over from the insured capital once the mortgage has been paid off, the beneficiaries designated by the policy holder will receive the corresponding amounts according to the express designation of the insured person.
If you would like more information and need advice, contact us:
CINC Insurance Brokers
933 030 060 (Barcelona)
972 505 100 (Figueres)
972 940 940 (Girona)


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