When we contract mortgages with banks, the entities usually advise us to contract additional products with them, such as life insurance, to obtain benefits in the form of interest. However, is it possible to change our home mortgage-linked life insurance in the future?
When is it said that life insurance is linked to real estate credit?
A The purpose of life insurance linked to real estate credit is to guarantee payment to the entity in the event of death. This is life insurance, like ours. All-risk mortgage life insurance, whose compensation is not for the individual, but for the bank, are necessary to guarantee your credit. With each passing year, your credit-related debt to the bank decreases. Indemnity and life insurance premiums associated with real estate loans also decrease over time.
Can we change our life insurance linked to the mortgage loan later?
If you want to change your life insurance policy with the entity that granted you the credit, you have the right to do so. While this may not appear to be the case, and while banks may require you to have life insurance when you sign a loan, they cannot require you to carry this insurance with you, even at signing. So whether or not you have a mortgage with a bank or insurance company, or are negotiating a mortgage, you can choose the life insurance you want or change the life insurance you have, as long as you abide by the terms of the clear contract. withdrawals.
Why change your mortgage-related life insurance? There are a number of reasons why you may want to change your home loan life insurance policy. These can come from raising the price of the policy to increase coverage, including additional protection coverage or services to increase your peace of mind.
What steps should you follow to change the life insurance associated with your mortgage?
If you want to replace the life insurance associated with your mortgage with another, the first step you must take is to look for a new type of life insurance that provides you with the coverage and conditions you need.
Once you find it, you have to do it. Notify the bank or insurance company that signed your life insurance contract 30 days prior to renewal that you intend to cancel the life insurance. To do this, you will need to create a written document stating your name, insurance details and your intention to terminate the contract.
(Don’t forget that you can usually only cancel your life insurance one month before the annual contract expires or when the premium price changes, since you’ll have 15 days to decide whether to accept the new price or cancel the contract.)
The entity or insurance company must respond to you that it accepts the cancellation. At this time, if you are a bank, you can indicate that you must have life insurance to replace the previous one to maintain your mortgage, so you must contract the new insurance from the entity.