Save on your home purchase with mortgage life insurance

Loan amount: This amount affects the sum insured, as it is intended to ensure that, in the event of death or disability, the debt is paid off, thereby preventing a significant financial burden on your family.

Additional expenses and family needs: You can purchase life insurance that isn’t tied to a loan. In this case, you can consider the other expenses your family would have to cover in your absence and purchase a basic life insurance policy with a death benefit of your choice, sufficient to cover those expenses. Do you dream of owning your own home? Perhaps you’re already considering this possibility and have started saving. In addition to saving, it’s essential to think about how to protect that investment and to consider the costs and suitability of life insurance linked to a mortgage.

Mortgage life insurance is essential for protecting your assets and ensuring your family’s financial security. In addition, it is generally a requirement imposed by banks when granting a loan. You should therefore consider all your options to find the best plan—and the most competitive one—so you can save on your insurance premiums.

In this guide, we’ll explore the different types of coverage and plans available, as well as highlight the benefits of mortgage life insurance. We’ll also share some tips to help you save on insurance, ensuring effective protection at a lower cost.

Learn what life insurance is and how it works

Life insurance is designed to protect you financially in the event of unforeseen circumstances. This insurance guarantees the payment of a sum insured—which may be linked to a loan or other financial obligation—in the event of the insured person’s death or disability.

When taken out in conjunction with a mortgage, life insurance is required to ensure that the debt to the bank is paid off in the event of death or disability.
This type of insurance protects your family from potential financial instability and, as a result, safeguards your assets.

The Benefits of Life Insurance

Buying a home is a major milestone. It’s a significant investment that requires careful financial planning. One way to save money is by choosing or reviewing a more affordable mortgage life insurance policy, while maintaining or even increasing your coverage.

By choosing the plan that best suits your needs through EXS Seguros, you can enjoy more comprehensive coverage while saving for your home. Learn more about the main types of life insurance coverage:

Death Benefit

Under this coverage, the beneficiaries receive the insured amount in the event of the insured person’s death during the term of the policy.

Coverage for Total and Permanent Disability (TPD)

The insured person receives the insured amount only if, due to illness or accident:

• become completely and irreversibly unable to engage in any paid work;
• and become dependent on the assistance of another person to perform everyday tasks.

With certain insurance companies, the degree of disability must be 85% or higher. However, keep in mind that each insurer has different criteria for each type of coverage.

Total and Permanent Disability (TPD) Coverage

In addition to providing IAD coverage, ITP offers a supplement for professional activity, under which it guarantees payment of the benefit if the insured person meets the following conditions:

• permanent and irreversible inability to perform professional duties consistent with one’s skills and knowledge;
• Disability rating exceeding 55%, 60%, 65%, or 66% (depending on the plan and the insurance companies), according to the national disability rating table.

In addition to these coverages, life insurance may also include other additional protections, such as coverage for involuntary unemployment. These options can be selected based on your needs and provide a comprehensive safety net for your family.

Life Insurance and Mortgage Protection

When it comes to protecting your assets and your family’s financial security, this type of insurance plays a key role. You may even choose to purchase one policy of each type: whole life insurance, term life insurance, and mortgage-linked life insurance (which is usually required by the bank).

Term life insurance is a choice that is independent of a home loan. This insurance provides coverage for death and disability for a specific period and a sum insured determined by the policyholder. This option is flexible, allowing you to choose the coverage, term, and beneficiaries in the event of a claim according to your preferences, since it is not directly tied to any lending institution.

On the other hand, the life insurance and mortgage insurance It is designed to protect your mortgage loan and, consequently, your home. This protects you and your family, as you won’t be burdened with debt in the event of an unforeseen circumstance.

For this reason, mortgage life insurance is considered the most essential type of insurance when you buy a home with a mortgage. Because it is directly linked to your mortgage, it protects your assets.

Simple term life insurance can be purchased as an additional form of protection, independent of any banking institution.

But before deciding on the best mortgage life insurance, you should assess your needs and consider the benefits of each option.

Types of Life Insurance to Consider When Buying a Home

When reviewing the options available on the market, you’ve surely come across different types of life insurance. These different types of insurance can be classified according to their purpose, namely:

• For personal and family protection: This type of insurance includes term life insurance, which is designed to ensure financial stability in the event of death or disability. It is a common option for protecting your family and ensuring they can maintain their standard of living. It does not have to be linked to any loan or credit.
• Life insurance linked to loan repayment: This type of insurance is associated with loans, such as mortgages, personal loans, or auto loans. When applying for a loan, it is common for the financial institution to require life insurance as a guarantee that the debt will be paid off in the event of death or disability.
• For companies: These insurance policies are designed to provide employees with financial compensation in the event of death or total or absolute disability. In addition to serving as a tool for employee motivation, the plan also offers tax benefits to companies.

When choosing life insurance to finance the purchase of your home, it’s important to assess your specific needs and consider which type of policy offers the most appropriate coverage for your needs.

How can you factor life insurance into your budget?

Including life insurance in your family budget is a way to ensure financial peace of mind. Here are some tips to make this more affordable:

• Look around: premiums can vary depending on the insurer, so take a close look at the available options to find the best deal. The best way to do this is to request a quote from a broker like EXS Seguros, which works with the top 26 insurers in the market.
• Pay your premiums annually and by direct debit: Some insurance companies offer discounts for annual payments and direct debit, which can help reduce costs in the long run.
• Take care of your health: Insurance companies consider factors such as age, medical history, and lifestyle when determining premiums. By taking care of your health, you can get more affordable rates.
• Review your insurance regularly: Over time, your financial situation or the amount of your loan may change. Therefore, assess whether the coverage and insured amounts still meet your current needs. Also, take this opportunity to compare offers from other insurance companies.

These tips can help you include the life insurance in the family budget more efficiently, ensuring adequate protection for you and your loved ones.

What is the best life insurance policy to provide you with the most comprehensive protection?

Choosing the best life insurance coverage is a difficult task. That’s why you should consider several individual factors to ensure that you’re adequately protecting your home. Here are some of the factors you need to evaluate:

• Loan amount: This amount affects the sum insured, as it is intended to ensure that, in the event of death or disability, the debt is paid off, thereby preventing a significant financial burden on your family.
• Additional expenses and family needs: You can purchase life insurance that is not tied to a loan. In this case, you can consider the other expenses your family would have to cover in your absence and purchase a basic life insurance policy with a sum insured of your choice, sufficient to cover those expenses.

Para o ajudar neste processo, um mediador de seguros especializado, como a EXS, pode ser um recurso valioso. Com mais de 26 anos de experiência, a EXS tem o conhecimento necessário para ajudá-lo a encontrar o plano de coberturas mais adequado às suas necessidades.

Invista num seguro de vida para a casa dos seus sonhos

Com a ajuda de profissionais experientes, encontrar o melhor seguro de vida crédito habitação torna-se mais fácil. Na EXS Seguros, ajudamos a encontrar o plano ideal para proteger a sua família e o seu património sem desequilibrar o orçamento – podendo usufruir de uma poupança de até 60%.

Para conhecer as nossas ofertas, solicite uma simulação grátis do seguro de vida. A partir das soluções das seguradoras mais competitivas em Portugal (Asisa, Real Vida, UnaSeguros, April, Metlife, Tranquilidade, …), apresentamos uma proposta personalizada.

Invista no seguro de vida crédito habitação através da EXS e tenha a tranquilidade de saber que está a proteger o futuro do seu sonho: uma casa para si e para a sua família.