EN 
ES Buying a house is not an easy task and, on many occasions, taking out a mortgage is the only possible option for acquiring it. In this respect, taking out a mortgage loan brings with it commitments with the bank, including the taking out of a life insurance policy.
In this article, we clear up all the questions regarding the contracting of insurance with the mortgage loan, taking into account the Law 5/2019 of 15 March 2019, regulating real estate credit agreements..
Is it compulsory to take out life insurance with the mortgage loan? Law 5/2019 of 15 March 2019
In accordance with Law 5/2019, of 15 March, regulating real estate credit contracts, it is not compulsory to take out life insurance to be able to apply for a mortgage. Therefore, in accordance with current legislation, the bank cannot oblige us to take out additional products when applying for a mortgage.
However, it is important to know that the interest rate can be reduced as customers take out complementary products with the bank, such as life or home insurance.
Can you cancel the insurance once you have been granted the mortgage?
The answer is yes. You can cancel the insurance at any time after the mortgage loan has been granted, as long as you respect the notice period with which you must inform the bank of this decision.
However, the bank may modify the conditions of the mortgage in response to this decision. For this reason, it is best to bear in mind a few things that we will explain below.
Why is it advisable to take out insurance for a mortgage loan?
Take out insurance with your mortgage can save a considerable amount of money, in addition to more advantageous conditions.especially during the first few years. This is because in this period of time, interest rates are higher and taking out insurance with the bank would reduce them.
However, if you wish to continue with the insurance once this first temporary period has passed, it is advisable to take it out with another insurance company.The interest on the mortgage loan will have decreased. In this case, the bank will increase the interest but still the mortgage payment will not change much.
On the other hand, among the benefits of taking out life insuranceIn the event of death or disability, the bank or insurance company will be responsible for the corresponding compensation to the beneficiaries of the insurance.
What is the difference between the insurance offered by the bank and that of another insurance company?
The main difference between insurance offered by a bank and insurance offered by another insurer, is the price. In fact, according to the "Comparative study of risk life insurance premiums 2021"The study was carried out by INESE, a service provider for the insurance sector, and the consultancy firm Global Actuarial, insurance companies offer better prices in life insurance than bancassurance companies.
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