When you take on a mortgage, you take on a financial responsibility to pay it. If you die of have a critical illness the dept will not go away and your surviving family members will have to pay the outstanding amount. If they fail to do so the mortgage lender can repossess your home.

 Most Spanish banks insist on people taking out a mortgage protection policy when the issue a mortgage even though they have no legal right to do so. In most cases do not have a suitable product. We have even heard of a case where the cost of 5 years life insurance was added to the mortgage loan. The client was still paying interest on this addition long after the five years had expired. Had he died after 2 years would he have received 3 years refund? We doubt it!

 Example of the type of products sold by banks –

100,000 Euros mortgage, banks solution - 50,000 Euros life cover on husband plus 50,000 Euros life cover on wife.

Potential problem – Husband dies and leaves his wife with a family to bring up and a 50,000 Euros mortgage to pay.

Our solution – 100,000 Euros joint life, first death, annual renewable term insurance.

Should either party die the full mortgage is paid off leaving the survivor dept free.