Crédito habitação: Transferir seguro de vida pode ajudar a baixar a prestação?

Mortgage credit: Can transferring life insurance help lower the monthly payment?

You may already be aware that it is possible to transfer your mortgage credit to another bank. But did you know that you can also transfer your mortgage life insurance to a new insurer? And the savings can be significant, achieving better conditions as well. It's true, find out more about it next.

20 Oct 20235 min

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Want to move forward with the transfer of your mortgage life insurance? Contact the insurance intermediary Poupança no Minuto to request proposals from various insurers and help you choose the right insurance solution for you. Or first, read about the positive impact this transfer can have on your budget.

In home credit, it is required to contract life insurance. The content can be accessed at:

At the time of hiring a home loan, you are required to take out life insurance. However, you should know that by law, this is not a mandatory product. But also it is not possible to contract a home loan without life insurance, since banks refuse to lend you money for a house if you are not protected by this insurance.  

So, this insurance is required and not mandatory. This is because banks need a guarantee in case the borrowers default on the loan. Therefore, in case of an accident or illness that prevents the policyholder from earning income and repaying the loan, the insurer assumes this responsibility.  

When hiring a life insurance, if one of the coverages ITA - Compensation for total temporary disability is activated, the insurer pays the insured capital compensation, allowing them to meet their mortgage credit obligation, thus relieving them and their family from that burden.

By law, it is not mandatory to hire the bank's insurance company.

In addition, it is also not mandatory to hire the life insurance of the home loan from the insurance company associated with the bank. By law, you can seek different proposals and proceed with the subscription of the insurance with another insurance company.

In order for them to contract with the associated insurer, banks may offer you better conditions (theoretically), such as a bonus on the spread of the loan. However, you should know that it may not be worth it compared to the savings that can be achieved with insurance contracted from another insurer.

According to the law, you can look for the insurance solution that best suits you, according to your lifestyle, preferences, and needs. And you may even be able to get a cheaper insurance policy with better conditions from a different company than the bank.

So, you should always look for several proposals and compare them with the bank's simulation (even with a penalty on the spread), to understand which one is worth it.

Distinguish between ITP and IAD coverages.

When hiring life insurance, you must first be aware of the coverage you can access, to understand what you need. The most common ones, besides death coverage, are Total and Permanent Disability (TPD) and Absolute and Permanent Disability (APD) coverage.

So, get to know what both coverage types mean before we move on to a practical example.  

ITP - Total and Permanent Disability 

Not life insurance, Total and Permanent Disability (TPD) represents a coverage that can be activated if the insured holds a disability level equal to or greater than 66%, as a result of illness or accident.

This disability prevents the insured from maintaining their professional activity and continuing to earn income to cover their expenses. Therefore, with this active coverage, the insurance company assumes the responsibility to pay the agreed upon insured capital in the contract.

IAD - Absolute and Definitive Disability 

An Absolute and Final Disability coverage is equivalent to incapacity equal to or greater than 80%, as a result of illness or accident.  

In this case, the invalidity corresponds to the "vegetative state", and the insured becomes dependent on others for vital needs.  

By activating IAD coverage, you gain access to the agreed compensation value with the insurer, so you can have a financially comfortable life, as you are unable to earn income.

In this sense, we can affirm that the ITP coverage is more comprehensive than the IAD coverage, as it covers a smaller and more common disability.

What is the impact of transferring insurance in practice?  

With a practical example, you may better understand the possible impact it can have on your wallet, a transfer of your life insurance associated with the housing credit. This is mainly in cases where the insurance was done to the detriment of the credit at the bank's insurer.  

This is the case of a couple, aged 41 and 35, who used the insurance mediation services of Poupança no Minuto, to transfer their mortgage life insurance.

The couple had a home loan of 144,000 euros in debt, with contracted insurance at the bank's associated insurer, and coverage for Total and Permanent Disability (TPD), paying a monthly installment of 137.80 euros per month and 1,653.64 euros per year. It is worth noting that this couple did not have clinical pathologies, risky professions, pre-existing diseases, or aggravations that could occur.

So, when transferring life insurance to a new insurer, with coverage for Total and Permanent Disability (ITP), this couple managed to get a proposal in which they started paying a monthly installment of 22.26 euros, 267.12 euros annually, while achieving even greater coverage.

Note, then, that: The couple only gained benefits with the transfer of their life insurance, considering the increase in coverage, and the savings achieved. Per month, the couple saved 115.54 euros, which results in an annual savings equivalent to 1386.52 euros.  

Want to analyze your case? Poupança no Minuto takes care of everything! Contact us and find out if you can get a cheaper and better life insurance solution for you. 


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