Do you have a life policy linked to a loan and want to cancel it? In this article we tell you how to cancel life insurance linked to a loan. Keep in mind that this type of cancellation can only be done during a certain period of time after signing the policy.
In any case, if «you are forced» to contract this policy, read it very well before signing to know what you contract . In any case, remember that it is not legal for the bank to force you to sign any insurance with them for contracting credits, loans or mortgages.
Taking out life insurance linked to a loan or mortgage is not mandatory , but, as we have already said several times in this medium, it is highly recommended , since it is thus guaranteed that, in the event of death or other circumstances covered by the insurance, the heirs or relatives do not have to face the payment of the debt or the loss of the assets that guarantee the loan.
However, it may be the case that someone decides to cancel life insurance linked to a loan, for example, because they want to take out a policy that improves the conditions of the insurance they want to cancel. But can this insurance be cancelled?
According to current legislation, if you have contracted individual insurance for a duration of more than six months that has stipulated the contract on your own life or that of a third party, you can terminate the contract without giving reasons and without any penalty within the following 30-day period. to the date on which the insurer gives you the policy or provisional coverage document.
In other words, during the 30 days following receipt of the provisional document of the policy, you can cancel life insurance linked to a loan with a duration of more than six months. And without giving explanations.
Keep in mind that, in any case, the insurer will have the right to collect the part of the premium corresponding to the coverage period that has elapsed since the conclusion of the contract until the date on which the termination of the contract is notified.
⇒Read this too: Life insurance linked to mortgage loans. What you have to know
To cancel this insurance, send a burofax to the insurer saying that you accept the right of unilateral withdrawal contained in article 83.a of Law 50/1980 on Insurance Contracts, ordering the return of the premium collected. But with the bank you don’t have to talk about anything. If they ignore you or tell you to talk to the bank, you can file a claim with the insurer’s Customer Service, which has up to two months to answer you. In the event that the answer is negative or they do not answer, you can file a claim with the Complaints Service of the General Directorate of Insurance and Pension Funds, which has another two months to answer.
If the 30 days have passed, what you can do is cancel the annual renewal. To do this, you have to properly notify the insurer one month before the renewal date.
At PuntoSeguro we take care of canceling your policy with the bank and saving you up to 70% with our insurance. Consult us without obligation on 91 435 90 96.
Other articles of interest
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- About the health questionnaire in life insurance and banking malpractice
- Can the bank deny a banking operation for not taking out insurance with it?
- Of ICO credits, life insurance, health crisis and banking abuses
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