Am I required to keep insurance with the bank where I got the loan?
You're not required to keep the insurance at the bank — you can choose the insurer. But check whether the move raises your spread and cancels the saving.
In this guide
The insurer is your choice
You don't have to keep the insurance at the bank where you took the loan. You can arrange it freely with another, often cheaper, insurer.
The catch: the spread discount
Many banks offer a lower spread conditional on taking the insurance in-house. Switching insurer can lose that discount and push the spread up.
Do the full sum
The insurance saving is only real if it beats the rise in the spread. Compare both effects before deciding — exactly the kind of sum we run with you.
Worked example
Switching the life policy saves €25/month, but the bank raises the spread by 0.2 points, adding €30/month to the payment (example figures). Overall, the move cost €5/month more — it didn't pay off.
Sources
Susana Vasconcelos
- Intermediária de crédito autorizada pelo Banco de Portugal n.º 0008496
- Mais de 10 anos na banca