Bank life insurance is almost twice as expensive as that sold by insurers. Specifically, hiring an entity’s policy in 2021 will cost you between 87% and 93% more than if you choose a specialized company.
Banks continue to inflate life insurance prices. The “Comparative study of life risk insurance premiums”, carried out every year by INESE and Global Actuarial, confirms that Spaniards pay between 87% and 93% more for these policies if they have them contracted at a bank . And that’s not all: that percentage has risen compared to 2020, so it is a price difference that, far from going back, is increasing.
In 2020, signing life insurance in a bank cost 79% more than in a company in the sector. The average bank premium was 446.86 euros, compared to 249.26 for insurers. The report updated to 2021 shows that this year they have inflated prices even more.
More difference the more capital is contracted
The 2021 study reveals yet another reality: the more money is contracted, the less it pays to sign it with the bank.
Let us suppose that a person wants that, if something happens to him, his family receives 30,000 euros. On average, he will have to pay a premium of 185.56 euros credit policy with the bank. In an insurance company, he would pay 99.37 euros. The difference is 86.7%.
If that person, instead of 30,000 euros, wanted to leave his family 120,000, it would be much more expensive to choose the bank. He would go from paying 360.42 euros in an insurance company to 694.03 euros. A difference of 92.6%, practically double .
Better coverage?
Given these data, you may think: “if it is more expensive, it will be because it protects me more”. However, it is not true.
To obtain all these results, the report has compared the premiums of 18 insurers (Aegon, Mapfre, Liberty, Caser…) and 6 banks (Bankinter, BBVA, CaixaBank, Ibercaja, Kutxabank and Santander). The policies analyzed are those that covered death and absolute disability, for people aged 35, 40, 45 and 50 years old and who contracted 30,000 or 120,000 euros.
Thus, the comparison has been made between policies that covered exactly the same . In other words: a person can get the same product, but with a difference of hundreds of euros. In the case of wanting to hire 120,000 euros, we are talking about a difference of more than 330 euros per year.
Bank life insurance is not mandatory
Banks generally sell life insurance associated with mortgages. When a person wants to ask for money to buy a house, they demand certain guarantees in return, such as having one of these policies. However, the law allows the client to choose the company he wants to hire him.
The mortgage law clearly establishes that the mortgaged party has the right to choose the policy they prefer, as long as they meet the requirements set by the bank. That means, according to the data from the INESE and Global Actuarial report, that you can save almost half the money that your bank would charge you.
Contract life insurance from the bank in exchange for paying less mortgage?
Many of these policies are signed with the bank because they discount the interest rate. That is to say that, in exchange for these products, the letter of the mortgage is reduced a little. The key is how much you save each month and whether it’s really worth paying almost double the premium . Let’s take an example:
A family has a monthly mortgage of 460 euros and life insurance of 360 euros per year. If they take out life insurance from the bank, they get a bonus and will pay a mortgage of 450 euros, but a premium of 694. If we do the calculations, we will see that the savings on the mortgage (120 euros per year), does not compensate for the difference in the price of the insurance (334 euros per year).
Non-specialized advice
In addition to the price, there is another big difference between bank life insurance and that of a company in the sector: specialization.
When we have problems with electricity at home, we call an electrician. And if our head hurts, we go to the doctor. The same thing happens with life insurance: it is a complex product that requires being specialized , in order to know how to meet the needs of the client and recommend the one that suits him best.
In banks, it is common for someone who offers these products to be a person specialized in finance, but not in insurance. This is a serious detriment to the client, who will not have expert advice on a product that protects something as important as the economic future of a home.
The data from the latest “Comparative study of risk life insurance premiums” show, once again, that the best option for your pocket is to compare between insurers and avoid bank life insurance . And not only that, but this year the difference between choosing one or the other is even greater.
However, if you already have life insurance from the bank, don’t worry: you can leave whenever you want and start saving hundreds of euros . You just have to give a minimum of 30 days’ notice and have already found an alternative policy. Find the best offer for you in our comparator , in just a minute and with the advice of professionals in the sector. Start saving now!
