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View Full Version : Finance Changing life insurance. What are my options?



Madelene B
04-06-2013, 20:47
Hi all forum friends
Nine months have passed since we bought our apartment in Puerto de la Cruz, with a mortgage from Solbank. We accepted the home and life Insurance (only I) from the bank, I don't think we had any other choice for the first year. Now three months before renewal I want to look for both insurances elsewhere. I previously had some good tips about the home insurance, but what about life insurance? Any good experiences out there?
Thanks!

timmylish
05-06-2013, 02:06
The very most important thing to remember is that you are only allowed to cancel such, tied Policies if you give the lender their required cancellation terms so find that out immediately. 1 month, 3 Months or even 1 year are the norm. If you afil to cancel properly you are stuck with the premiums for another year!

Madelene B
09-06-2013, 19:36
Hi Timmylish
Yes, good point. My policy document says two months, so i still have some time to decide, expires on September 25.

casabonny
10-06-2013, 12:15
If you decide to cancel make sure you do this in writing and my advice by Burofax to ensure that you have legally complied with the terms and conditions. Make sure that your letter arrives well before the two months date .

Life Insurance can be a minefield but from what you says it seems more likely that its a mortgage life insurance, ie that the payout would not be paid to next of kin but to Mortgage lender first then any balance to next of kin.

Contact Emma ( details in my signature ) as she will be able to get you some alternative quotes.

fixer
10-06-2013, 12:26
Remember also there may be a condition in that granting of a mortgage that the life insurance has a conditions attached to it that you have to have it with the bank tryed recently to cancel this they would not let me because off this.

casabonny
10-06-2013, 15:40
Remember also there may be a condition in that granting of a mortgage that the life insurance has a conditions attached to it that you have to have it with the bank tryed recently to cancel this they would not let me because off this.

Depends what it says in the Escritura de hipoteca, these are the terms that can legally be enforced and not just because the bank say so, although they may make it difficult for you to change/cancel.

Madelene B
20-02-2016, 15:37
Thank you all for the great tips. 2 years+ and I still haven't done anything about this. Just this afternoon I took the time to read through the conditions, there are a lot och exclusions. Perhaps this is the way mortgage life insurances generally are constructed but I don't think it's worth the premium we pay today.
I'm going to contact my bank and see if they approve of other solutions than their own mortgage life insurance. Ta

information
20-02-2016, 15:48
Thank you all for the great tips. 2 years+ and I still haven't done anything about this. Just this afternoon I took the time to read through the conditions, there are a lot och exclusions. Perhaps this is the way mortgage life insurances generally are constructed but I don't think it's worth the premium we pay today.
I'm going to contact my bank and see if they approve of other solutions than their own mortgage life insurance. Ta


In my opinion buying anything from the bank is a mistake as it is normally much cheaper from a broker.