If you are considering hiring a housing credit, you are likely to have heard the need to subscribe to life insurance. This insurance protects both the bank and the customer, ensuring that the debt is settled in case of death or invalidity of the borrower. But the question that arises is whether the law requires this insurance with the banking institution.
According to the site specializing in personal finance, ekonomist, legally the customer is not required to do a life insurance to get a housing credit. Still, in practice, banks condition the loan approval to the existence of this protection, making it an almost inevitable requirement.
The purpose of Life Insurance in Housing Credit
Life insurance linked to a housing credit covers death and disability situations, ensuring that the amount in debt is paid by the insurer directly to the bank. It usually includes coverage such as absolute and definitive disability (IAD), total and permanent disability (ITP) and death.
IAD covers cases where the holder is totally unable to perform daily activities without assistance. ITP, on the other hand, applies when the person cannot perform any paid activity, but maintains autonomy for daily tasks.
According to the same source, ITP coverage is generally comprehensive and may be more appropriate for some customers, although the costs and conditions varies depending on the insurer.
Can you choose another insurer?
A common question is whether it is mandatory to hire insurance with the bank insurer. The legislation ensures that the client can choose any market insurer, provided they comply with the coverage required by the bank.
However, this freedom may imply changes in credit conditions, such as the spread, and in certain cases, the final value of the monthly installment.
Therefore, it is essential to compare different options. Detailed simulations can reveal whether the savings obtained with an external insurer compensates for any penalties imposed by the bank.
Advantages of searching and comparing offers
Freedom of choice allows you to negotiate insurance that adjusts to budget and family needs.
Comparing different proposals helps to evaluate coverage, awards and impact on monthly installment. More economical insurance, even with any change in spread, can result in a financially advantageous solution over the years.
According to the support of financial consultants or entities such as Deco can be decisive to make an informed decision.
Carefully evaluating all options ensures adequate protection for the home and family without compromising financial stability.
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