Insurance, Credit, and Housing
Switch Your Mortgage Insurance and Find Out How Much You Can Save
Do you have mortgage insurance through your bank? You might be paying more than you need to.
When taking out a mortgage, it is very common for customers to simultaneously purchase the life insurance and comprehensive property insurance recommended by the bank. In most cases, this solution is accepted because it is convenient and is part of the loan approval process.
However, what many people don’t realize is that these insurance policies remain in effect for years without any reassessment. Over time, needs may change, new offers appear on the market, and it’s possible to find solutions with the same coverage—or even more comprehensive coverage—at a significantly more competitive price.
Contrary to popular belief, there is no obligation to keep your insurance with the insurer designated by the bank. The law allows customers to freely choose the insurer of their choice, provided that the new policy meets the coverage and requirements set forth in the mortgage contract. The bank continues to benefit from the required guarantees, and the customer can enjoy a premium that is better suited to their needs.
Transferring your mortgage insurance can result in significant annual savings without losing coverage. In addition to lower premiums, you can benefit from coverage better suited to your needs, more attentive customer service, and more personalized management of your insurance.
At R2 Seguros, we provide a free, no-obligation review of your current insurance policies. We compare quotes from several leading insurers, check whether you can get better terms, and handle the entire transfer process, ensuring a simple, fast, and hassle-free transition.
If you want to reduce the costs associated with your mortgage without compromising the safety of your home and your family, talk to us. Our team will help you find the most advantageous solution, with complete transparency and support every step of the way.
Can I change my bank's insurance policies?
Yes.
Portuguese law protects consumers’ freedom of choice. Although the bank may require that insurance be taken out in connection with a mortgage, it cannot force you to purchase that insurance from a specific insurer.
The only requirement is that the new policy provide a level of coverage equivalent to that required in the financing agreement.
This applies to both Mortgage Life Insurance and Comprehensive Home Insurance.
Which insurance policies can I transfer?
Mortgage Life Insurance
The purpose of Mortgage Life Insurance is to ensure payment of the outstanding principal in the event of the death or disability of the insured individuals.
It is precisely with this type of insurance that, in many cases, there is the greatest potential for savings. Depending on your age, the outstanding balance, your health status, and the terms of the policy, it is possible to achieve very significant reductions in the annual premium.
In addition to the price, it is important to review the coverage provided. Many policies include only coverage for Absolute and Permanent Disability (IAD), while others offer Total and Permanent Disability (ITP), which provides broader coverage and greater protection for the customer.
Each situation must be analyzed on a case-by-case basis, always seeking the best balance between price and protection.
Multi-Risk Home Insurance
Multi-Risk Insurance protects the property used as collateral for the bank, but it can also protect your assets against a variety of risks.
When comparing proposals, you shouldn't just look at the price. It's important to consider aspects such as:
- water damage;
- storms and floods;
- seismic phenomena;
- theft or robbery;
- civil liability;
- cosmetic damage;
- home care;
- protection of the filling;
- deductibles and exclusions.
A policy that appears to be cheaper may actually offer significantly less coverage. Our job is precisely to help you compare what really matters.
Can the bank refuse the change?
No.
The bank may verify whether the new policy meets all the conditions set forth in the loan agreement, such as the insured amount, mandatory coverage, or the mortgagee clause.
However, you cannot refuse the replacement simply because the insurance policy was purchased through another insurer or an insurance broker.
Before the transfer, R2 Seguros verifies all of these requirements to ensure that the process goes smoothly.
Can the bank increase the spread?
It depends on the terms of the loan agreement.
Some contracts provide for a spread discount if certain products are maintained with the bank, such as insurance policies, direct deposit of pay, or other services.
If this condition exists, switching insurance policies could result in a higher spread. However, that does not mean the switch is not worth it.
At R2 Seguros, we analyze:
- a possible increase in the loan amount;
- a reduction in insurance costs;
- monthly and annual net savings;
- the financial impact over the remainder of the loan term.
In many cases, the savings realized on insurance continue to be significantly greater than any increase in the spread.
How does the insurance transfer work?
At R2 Seguros, we oversee the entire process, from the initial review to the completion of the transfer.
1. We review your contract
We reviewed all relevant documentation, including:
- credit entry;
- supplementary document;
- loan terms;
- current policies;
- outstanding principal;
- requirements set by the bank.
2. We compared several insurance companies
We present offers from different companies and compare them:
- awards;
- roofs;
- exclusions;
- franchises;
- safe capital cities;
- definitions of disability;
- expected trend in premiums.
You will receive a clear explanation of the differences between each solution so that you can make an informed decision.
3. We handle the paperwork
Once the best solution has been chosen, we handle the entire process:
- issuance of the new policy;
- documentation required by the bank;
- change of beneficiary;
- coordination of start dates;
- Request to cancel the previous insurance policy.
Our goal is to make sure you don't have to worry about the red tape.
Can I change just one of the insurance policies?
Yes.
You are not required to transfer both insurance policies at the same time.
You can choose to:
- transfer only the life insurance;
- transfer only the Multi-Risk Insurance;
- transfer both;
- temporarily keep one of the insurance policies if doing so allows you to retain some of your credit bonus.
Each situation must be analyzed on a case-by-case basis.
Why choose R2 Seguros?
At R2 Seguros, we operate completely independently of insurance companies, always seeking the most advantageous solution for each client.
When you choose us, you’ll enjoy:
- a free review of your insurance policies;
- comparison of various insurance companies;
- personalized support;
- support from the bank;
- comprehensive handling of bureaucratic procedures;
- ongoing monitoring throughout the term of the contract;
- support in the event of claim.
More than just finding cheaper insurance, we strive to ensure that you remain properly protected.
Request a free analysis
If you have life insurance or comprehensive insurance linked to your mortgage, we can help you figure out if you're paying more than you need to.
Please send us your current policies and credit terms. Our team will review your situation free of charge, compare various solutions available on the market, and present you with a clear, transparent, and no-obligation proposal.
Find out how much you can save on your mortgage insurance with R2 Seguros.