In the past, when you applied for a mortgage through the bank, you were obliged to take out a life insurance policy that conditioned the granting of the mortgage loan. In reality, these insurances have higher rates than those usually offered by the market, and you end up paying a higher price than those offered through other channels, such as Insurance Brokers and Mediators.
Did you know that the new Mortgage Law, in force since June 2019, eliminated this practice? This means that banks must offer you other alternatives, as well as allowing the customer to take out the policy on their own and present it to the bank.
Do you want to start paying less for your mortgage life insurance? At CINC Correduría de Seguros we offer you one of the best life insurance policies on the market with very attractive conditions. This is a specific life insurance designed to cover the outstanding capital in the event of premature death or permanent disability. And the great advantage is that you will only pay a price adjusted to the real debt you have at any given moment.
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 the 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, no excess premium is paid.
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.
The rate may vary depending on the profession or the practice of risky sports.
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 Insured Death Capital must be the capital received for the loan, with the possibility of adapting each annuity 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 insured person's express designation.
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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