Currently there are many banks that to grant a mortgage loan require the contracting of different products among which life insurance. Is it really mandatory to hire him?
Hiring a life insurance with a mortgage?
The answer is completely clear, simple and categorical, no. It is not mandatory to contract this product and no entity can force anyone to hire anything. And this is not something that is said to be said, but according to Law 26/2006 on private insurance and reinsurance mediation and article 5.2e: “Private insurance and reinsurance intermediaries can not directly or indirectly impose a contract for sure”.
If the bank that is going to apply for a mortgage loan does not agree with it or tries to force the client to do so, it is best to change banks and find another one that does not “force” to hire any class of product.
If for any reason the mortgage loan is formalized and some life insurance has been contracted, it must be borne in mind that the consumer has the full right to cancel this insurance policy.
In article 83.a 1, Law 50/1980 of the Insurance Contract mentions that within a maximum period of 30 days from when the insurer gives the definitive policy or provisional coverage document, it will be the policyholder himself who will be able to resolve the contract without having to give any kind of explanation. This should not imply any penalty and the insurer can not oppose this annulment given that the policyholder is exercising his right that appears in the aforementioned article. The only indisputable requirement is to do it within the stipulated period of 30 days, if it is done on day 31 it can no longer be canceled.