Do you want to buy a house? You choose life insurance for your mortgage.

The  COVID-19 pandemic and the confinement experienced have highlighted the shortcomings of many households. Many people have taken the step -or want to take it- of leaving the big cities to move to peripheral areas.

Specifically, the main preferences of citizens when buying or renting a home are less central areas, with greater light, and with gardens or large terraces. In addition,  telecommuting has also influenced new tastes since, as it is not so necessary to live close to work, we choose to work outside the hustle and bustle of the city. Thus, priority is given to having greater tranquility and outdoor space.

On the other hand, it should be noted that the preferences between renting and buying homes are very similar. Now, it is striking to see how there has been an increase in demand for home purchases, especially in a year of economic recession.

Hiring life insurance is recommended but not mandatory.

If you are considering buying a home, it is important to know that, when signing a mortgage loan,  it is recommended to have life insurance. However, it is neither mandatory to contract it nor is it mandatory to sign it with the same financial institution from which the credit is requested, as many believe and make it understood.

Currently,  the law does not require  Life insurance, but it is true that many entities require it to grant the loan. Of course, banks cannot force you to take out life insurance for your mortgage with the insurer of your choice; this is a  practice prohibited by the Spanish Real Estate Credit Law.

Despite this, according to data from the General Council of Insurance Brokers, these practices continue to happen: 87% of applicants for a loan or mortgage state that the bank offered them the possibility of contracting life insurance with them, and in In more than 70% of the cases, the bank forced them to contract it as an “indispensable condition.”

With an insurer, mortgage life insurance is cheaper.

Knowing this information if you are looking for a mortgage loan is essential. In this way, you will ensure that you obtain the best conditions without paying for insurance products that do not suit your needs or that are too high in price.

And it is that, although it is true that banks offer their own insurance along with improvements in financing conditions, you will obtain better prices when you contract your mortgage life insurance through an insurer or a broker. Specifically, on average, the price of Life insurance from an insurer is 249.26 euros per year, while that of a bank is almost 80% higher  (446.86 euros).

Therefore, when hiring  AARP Life insurance for your mortgage,  stop to calculate what is more on the account. Compare prices and make sure that the life insurance coverage is what interests you. 

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