Mortgage life insurance
By the SpreadHunters team — updated October 6, 2026
Banks usually require life insurance (seguro de vida) and home insurance, but you don’t have to take theirs. We compare the bank’s offer with those of our partner insurers, MetLife and Real Vida Seguros, to cut the cost without losing cover.
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Life insurance (seguro de vida): it repays the outstanding loan in case of death or total and permanent disability. It is not required by law, but the bank can make it a condition of the loan, and almost always does. It is then required for each borrower.
Home insurance (multirriscos): it covers at least fire damage to the property, for the whole term of the loan.
When the bank requires life insurance, you remain free to choose your insurer, as long as the policy meets the minimum cover it asks for. The bank must accept a policy from another insurer offering an equivalent level of cover, and you can also replace it later with another policy covering the same loan. This follows from Decreto-Lei n.º 222/2009 and article 11 of Decreto-Lei n.º 74-A/2017.
Be aware: the bank may lower its margin if you take its insurance. That is why we compare the total cost, with and without that discount.
| Criterion | Bank insurance | External insurance |
|---|---|---|
| Premium | Often higher | Often lower, with equivalent cover |
| Margin discount | Possible if you take it | May be lost: include it in the calculation |
| Cover | As required by the bank | Must be equivalent, checked line by line |
| Paperwork | Built into the loan file | Bank acceptance needed, which we handle |
A complete and accurate health declaration is essential: an omission can lead to a claim being refused.
Each borrower fills one in. We help you complete it, in English or French depending on the insurer.
They depend on your age and the amount insured: blood tests, ECG or a medical report. We tell you in advance what will be asked.
A past serious illness or ongoing treatment: solutions exist depending on the case. We prepare the file with the insurer to present your situation in the best light.
Insurance is prepared alongside the loan offer: the bank must accept it before issuing the final offer.
1
We read the required cover and the cost of the bank’s insurance, with and without the margin discount.
2
We compare the bank’s offer with those of MetLife and Real Vida Seguros, with equivalent cover and on total cost.
3
Questionnaire and any medical tests: we follow up the file with the insurer.
4
We send the policy to the bank and check that it is approved.
5
The chosen insurance appears in the offer and the FINE, before the 7-working-day reflection period.
No. The bank can require life insurance, but it must accept a policy from another insurer offering an equivalent level of cover (article 11 of Decreto-Lei n.º 74-A/2017).
Your age at the end of the loan, your health, smoking, the amount and term of the loan, and the share insured. In principle, the insured capital follows the outstanding loan and the premium adjusts accordingly.
No. A 50/50 split costs less; 100% on each borrower fully protects the survivor.
Yes. The law lets you replace your policy with another one covering the same loan, as long as it meets the bank’s minimum cover (Decreto-Lei n.º 222/2009). Check the effect on your margin first.
Solutions exist: additional tests, a premium loading or targeted exclusions, and specific arrangements for higher health risks. We support these files.
Yes, most steps are done remotely, and the questionnaire can be completed in English or French depending on the insurer.
One call is enough to know how much you could save and which cover to ask for.
Insurance policies are issued by our partner insurers, MetLife and Real Vida Seguros. SpreadHunters is a credit intermediary registered with Banco de Portugal (no. 0006447).
