It is possible that, when requesting a personal loan or a mortgage, you have found yourself being forced to take out life insurance. Well, this condition can never be mandatory. However, sometimes it is one of the requirements of some entities to grant you the requested funding. Next, let’s see if you can unsubscribe that insurance and how.
There are insurance comparators that find policies more appropriate to your risk profile or your needs. But what can you do if you have already taken out insurance? Can you cancel a policy? Is it legal to cancel life insurance?
Right of withdrawal in life insurance
If you have decided to change your insurance, the first thing you should do is cancel the policy you have contracted . You can cancel it without the need to carry risks or consequences by filling out this letter of low cancellation type of insurance, so you know how to proceed.
You must be aware of the renewal date. The insurer has the obligation to notify you at least two months before the date of renewal of the insurance, as well as the price of the following policy. If you do not notify the insurance cancellation, Law 50/1980 says that it can be renewed automatically. If your insurance doesn’t let you know, don’t worry, because in The Good Finance we do . We will inform you through the app and mail.
If you do not want to renew the policy, according to article 22 of the Law you must notify the insurer 30 days before the expiration date. The method of notice will depend on what was agreed with the insurer. Of course, the consequences depend on each insurer. There are cases in which it is only possible to cancel it if you no longer have the insured good in possession. Therefore, it is important that you have all the information to know what you are exposed to.
Reasons why I can cancel the insurance
If you are thinking of canceling your insurance, there are four reasons why you can proceed without waiting for the contract to expire.
Cancellation by modification of the price or coverage. If your insurer decides to change the conditions of the contract and you do not agree with them, you do not have to notify a month before. It is mandatory that they inform you of the changes made and it will be you who decides if you want to continue with the insurance or not, even if there is less than one month left for the renewal. You have 15 days , since you receive the proposal, to accept or reject it. If you do not answer, they will understand your silence as an acceptance of the modifications.
Cancellation due to risk reduction. The price you pay is established according to the risk assumed by the entity. At lower risk, lower price. If the risk has been reduced, you have notified your insurer and still have not lowered the premium, you have the right to cancel it before the expiration date.
Cancellation by hiring online. If you have purchased insurance online, you have 14 days to regret it. They cannot ask you for explanations or penalize you for it.
Cancellation of life insurance. Life insurance has its own regulations. According to the Insurance Contract Law, in its article 83, if you have contracted individual life insurance and for a period of more than 6 months, you can cancel it within the next 30 days of contracting.
Home insurance with mortgage loan
Another of the most common contracted insurance that they usually force to contract when signing a mortgage is home insurance. It is only mandatory to take out home insurance when you sign a mortgage if it is securitized. In this case, the regulations indicate that the acquisition of a damage contract for that house is necessary. Otherwise, if the mortgage is not securitized, you have no legal obligation to contract home insurance with its specific conditions.
The hiring of insurance must be a totally free action . The idea is that these products provide peace of mind. The insurer will respond to a certain situation. Therefore, the hiring of insurance must be a thoughtful, free decision and should never be negotiated individually.
The Good Finance also helps you save on your policies. You have all your insurances at hand, well detailed and notifies you before expiration so you can stop losing money when you renew them. Also, if you want to know how to cancel your insurance through your The Good Finance application, you can learn how to do it here.
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