Have you made a mortgage loan in the past and do you consider that you are paying too much for the life insurance associated with it? Would you like to save money on insurance and not know what to do? In this article we will talk to you about the housing credit life insurance and show that it is possible to save a lot of money here.
Do You Know How Much You Pay For Your Life Insurance?
Many people have hired their housing credit only keeping in mind the spread practiced by the bank. Maybe they traded to lower the spread. But they will most likely ignore the other costs that in the meantime would be “hidden”. Excessive commissions and insurance premiums. Fortunately, the state has forced banks to publish the rate that incorporates all these costs (APR), a rate that allows comparing different alternatives in their overall.
Taking only the housing credit spread into account, banks will very likely take advantage to charge excessive premiums for the life insurance premium. And keep in mind that this premium will increase over time as you grow older. We know too many people who pay more for life insurance than for the provision of credit. Makes sense?
Banks Can not Rise Their Spread
The fear of many households in changing contracted products to reduce the spread of housing credit is closely related to the possibility of increasing the spread associated with credit (which for old contracts is very close to zero).
Today it is possible to withdraw products from your contract without having a loss in the spread. Even with losses, the monthly savings would often offset the rise in the financial cost. It’s all a matter of accounts. Here’s how you can save money on the life insurance of your housing credit.
Saving Money When Changing Homeowner’s Life Insurance
We suggest our readers to make a brief simulation of the new housing credit insurance premium. For rapid simulation, the following information is sufficient:
- Total amount owed;
- Age of credit proponents;
- Final term of the contract.
You can save more than 50% on life insurance. I did this exercise twice in the last 3 years and achieved in the first a saving of 24% and in the second of 47%. In practice, I had a 60% reduction in my life insurance premium (went from € 17 to € 13 and then to € 7). Worth it. Imagine now that he was a little older and that the prize was € 70 … we would be talking about a saving of € 49 per month or € 588 per year. Worth it?