*Law No. 14/2026, of April 27, changed the rules of life insurance associated with housing loans. From now on, banks can only require death coverage in the life insurance associated with housing loans. Additional coverages, such as IAD or ITP, become optional, meaning the customer can choose to include them or not, but they cannot be imposed as a condition for accessing the loan.

Is the bank's life insurance always the best option?

Not necessarily. When a credit institution requires the purchase of a life insurance associated with a housing loan, the client can choose the insurer, as long as the policy meets the minimum requirements for death, or those defined for the financing contract.

Poupança no Minuto clarifies that when life insurance is required, the client can choose the entity with which they wish to contract it.

That's why automatically accepting the insurance offered by the bank may not be the only option.

Why does the bank ask for life insurance?

Life insurance associated with housing loans has an important role: protect assets and family budget in serious situations, such as death or disability covered by the policy.

In case of a claim, the insured capital will be used to reduce the total or partially the loan, according to the policy conditions.

Can I choose another insurance?

Yes. If the institution requires life insurance for the loan, it must indicate the minimum requirements the policy must meet.

The customer can look for alternatives with other insurers, as long as they meet these requirements.

Is the cheapest insurance always the best?

Also not. When comparing life insurance associated with housing loans, you should analyze:

Award;

Coverages;

Safe capital;

Exclusions;

Age;

Award evolution;

Acceptance conditions;

Impact of changes in debt capital.

A price difference may be related to differences in coverage or conditions.

Can insurance affect the cost of credit?

Yes. Required insurance can be included in the APR calculation, when applicable. The Bank of Portugal includes required insurance for obtaining credit among the costs considered in the APR calculation.

That's why, when comparing loan offers, you shouldn't just look at the spread or the installment.

Also should analyze the costs associated with insurance.

What if you change insurance after taking the loan?

The possibility of replacing the insurance must be analyzed according to the credit contract, policy, and institution requirements, often already meeting the minimum service package required by the bank.

Also important to note if the insurance change affects other credit conditions, when there are optional associated sales or specific commercial conditions.

What to compare before choosing?

Make a comparison between:

Plan A

initial prize;

expected evolution;

coverages;

exclusions.

Plan B

award;

coverages;

exclusions;

Terms of acceptance.

After, assess the impact on the global funding cost.

The insurance offered by the bank may be an option, but should not be accepted automatically without comparison.

The most important thing is to find a solution that meets credit requirements and offers a suitable balance between price, coverage, and terms.

Are you applying for or reviewing your housing loan? Do a free simulation at Poupança no Minuto and discover the options that make sense for your situation. Get a personalized analysis with no commitment.

Am I required to buy life insurance at the bank?

If the bank requires life insurance as a credit condition, there must be a policy that meets the defined requirements. The client can usually choose the insurer.

Can I change the insurance after taking the loan?

It may be possible to replace the insurance, provided the applicable requirements are met.

Does the insurance enter the APR?

The required insurance for obtaining the loan can be considered in the calculation of the APR.

How to know if the bank insurance is worth it?

Compare price, coverage, exclusions and premium evolution over the loan.

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