Life insurance for a mortgage or a loan
To cover a debt, Allianz has its own life insurance: Riesgo Protección Financiera. If the insured person dies, Allianz pays the sum insured, and that sum can go down as what you owe goes down.
It works for a mortgage loan and also for a personal loan.
- Death from any cause, illness or accident
- Decreasing sum insured: it falls with the debt
- For a mortgage or a personal loan
- Switching from another company's policy is provided for in the product
What the bank can ask of you and what it cannot
When you sign a mortgage, the bank can require you to have life insurance. What it cannot do is force you to take its own. Article 17 of Ley 5/2019 de crédito inmobiliario (the real estate credit law) obliges the bank to accept a policy from another insurer with equivalent cover, and the switch must not worsen the terms of your loan.
Before you decide, check two things in the policy you have now:
- Who gets paid. In many policies signed at the bank, the only beneficiary is the bank itself: the money pays off the debt and nothing more reaches your family.
- How much is insured. If the sum insured stays the same every year while your debt goes down, you are insuring money you no longer owe.
With Riesgo Protección Financiera the sum insured can be decreasing: it keeps pace with the debt, and you insure what you owe at any given time.
What it covers
Main cover
Death from any cause. Whether it is from illness or an accident, Allianz pays the sum insured.
Cover you can add
- Permanent total disability. If it is recognised, the death benefit is brought forward and paid during your lifetime. It is assessed using the criteria of the Seguridad Social.
- Payment protection (protección de pagos). While you are on medical sick leave, it pays the loan instalment. It has a six-month waiting period: it starts working six months after you take it out.
What it does not cover
- Unemployment. Payment protection covers medical sick leave, not losing your job. If you are self-employed, the same applies: on sick leave, yes; out of work, no.
- Serious illness. It is not part of this product. If you want it, it is in packages of term life insurance.
Your occupation counts
For this insurance Allianz puts occupations into four types. This affects both the calculation and taking out the policy, so tell us exactly what you do.
Type I
Work without manual effort: administrative staff, sedentary work, homemakers, liberal professions, business owners, shopkeepers, shop assistants and foremen.
Type II
Manual work with tools, without scaffolding, dangerous machinery, explosives, weapons or high voltage. Also farmers and drivers of cars and vans.
Type III
Lorry and bus drivers, operating industrial, agricultural or dangerous machinery, and work on scaffolding.
Type IV
Occupations Allianz looks at case by case, such as professional athletes, miners, divers, lumberjacks or well diggers.
What we need to calculate it
- What is left to pay on the loan.
- The years remaining.
- Whether it is a mortgage or a personal loan.
- The interest rate: it is used to calculate the instalment that payment protection would pay.
- Your date of birth and what you do for a living.
- If you already have life insurance for this loan, a copy of the policy.
Almost all of it is in the repayment schedule (cuadro de amortización) the bank gave you. To take it out you must be resident in Spain.
Switching the insurance you have with the bank
- You send us your current policy and the repayment schedule.
- We calculate Riesgo Protección Financiera with what you still have to pay and the remaining term, and send you the Allianz quote.
- If you are happy with it, you take it out. The product provides for the transfer of a policy coming from another company.
- For the bank, we give you whatever policy documents it asks for. Do not cancel the old policy until the new one is in force.
Asking for a price does not commit you to anything. No loan behind it, and what you want is to protect your family? Then term life insurance is the one for you.
For guidance only. What counts are the policy conditions and the Allianz nota informativa previa.