We’ll keep reminding you: banks cannot force you to take out life insurance linked to your mortgage. It is compiled in a European Directive (2014/17/EU) and will be included in the next Spanish Mortgage Law.
The bank says: “Contract this insurance with us and we will reduce mortgage interest rates for you”. Not true! Products offered by banks tend to be more expensive in exchange for the same or even lower benefits. And what’s worse, they do not offer all necessary information to know about what you’re really contracting.
With the mortgage, taking out Life Insurance is not mandatory because the Law only requires you to contract Home Insurance with Fire coverage for a reconstruction amount equal to what you owe the bank.
Life Insurance is highly advisable for dealing with special circumstances (unemployment, illness) or death (family would be free from burden in this case).
If you want to cancel your insurance with the bank because you have found better options please send a bureaufax to the insurer and the financial institution one month in advance and subscribe to another policy that same day.
It’s that simple. We can properly advise you at our Brokerage as you know.