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INSURANCE

Mortgage-linked life insurance

Insure the outstanding principal of your mortgages and the well-being of your family.

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What is mortgage-linked life insurance?

Life insurance linked with Santander Mortgages aims to protect and maintain your family's financial stability, in case of death, or protect you if you suffer from an absolute permanent disability.

In addition, you have the option to take out unemployment or temporary disability coverage, which will be applied depending on your employment situation at the time of the accident.

INSURANCE FOR YOU AND YOUR FAMILY

In addition to coverage for death by any cause and absolute permanent disability, you can add unemployment or temporary disability coverage.

FLEXIBLE PAYMENT

Choose the payment method that best suits your needs, either payment in the form of a one-time premium or annual payment with renewal each year.

DECREASING PRINCIPAL

The sum insured will decrease as your mortgage is paid off.

Summary of coverage¹

	Linked Life Insurance Regular Premium (RP)	Linked Life Insurance Single Premium (SP)
Death of the policyholder by any cause
Absolute Permanent Disability
Unemployment or Temporary Disability	Optional	x
Payment method	Annual	SP for 3 years, then RP

SP: Single premium insurance of the company Santander Vida, Seguros y Reaseguros S.A.
RP: Periodic premium of the insurance company Santander Vida, Seguros y Reaseguros, S.A., unless you take out Unemployment or Temporary Disability coverage, which the insurance company will be Santander Seguro y Reaseguros, S.A.

Requirements

Depending on the product selected, your age, profession and insured capital, you will need to fill out a simple medical questionnaire, a medical survey over the phone or a medical examination.

Anyone from 18-64 years of age can take out this policy.

Find out more

Calculate your insurance if you are a customer.

CALCULATE INSURANCE

If you have any questions or want to know more, call us at

651 905 667

Common questions about this insurance

Is it mandatory to take out insurance together with the mortgage?

There is no obligation to take out a life insurance policy associated with the loan subscribed by you nor is there any obligation to take it out with Santander Vida Seguros y Reaseguros, S.A. or Santander Seguros y Reaseguros, S.A., and it may be contracted, where appropriate, with any Insurance Company authorised to operate in Spain. Likewise, if there is any advantage for taking out the insurance, you must go to the loan information.

What types of life insurance policies are arranged with the mortgage?

Depending on the type of premium payment you choose, there are different types of life insurance linked with the mortgage:

Regular premium: The premium is renewed annually with the option of paying in instalments on a semi-annual or quarterly basis. The life insurance premium linked with the mortgage varies as the mortgage is repaid and as the term of the contract gets closer.
Single premium + regular premium: the cost of the mortgage-linked life insurance is paid at the start and then for 3 years. After 3 years, the insurance is paid via a regular premium which is renewed annually, with the option of paying in instalments on a semi-annual or quarterly basis.

What is mortgage-linked life insurance and what is it for?

A mortgage-linked life insurance policy provides that, in the event of death, or another case covered by the policy, the insurance will cover the percentage of the outstanding debt with the bank that the policyholder would have decided to insure.

What sum is insured with the mortgage-linked life product?

The maximum sum per policyholder in the policy must be the same as the principal or mortgage amount pending repayment at any time. The insured sum is calculated as the product of the outstanding principal of the mortgage multiplied by the percentage of insurance. If only one person is insured, the insurance percentage will be 100% of the outstanding principal of the mortgage. If two people are insured, the insurance percentage may be between 50% and 100% of the outstanding principal of the mortgage.

Who is the beneficiary of the mortgage-linked life insurance?

In case of death or absolute permanent disability, the irrevocable beneficiary will be Banco Santander for the amount of the mortgage pending repayment, and up to the limit of the insured sum. If the insured sum exceeds the unpaid capital of the linked mortgage, the difference will be received by the beneficiaries named in the policy.

In the event of temporary incapacity or unemployment, the beneficiary is the insured person himself, who receives the insured capital.

In the event of an excess between the insured sum and the principal to be repaid, this shall be paid to the beneficiaries named in the policy in the event of death or to the policyholder in the event of permanent disability.

What coverages does mortgage-linked life insurance offer?

Depending on the selected product, coverage may include:

Death: In case of death due to illness or accident suffered by the policyholder, the insured sum will be the result of multiplying the percentage of insurance by the outstanding principal of the mortgage at the date of the claim.

Suicide or attempted suicide would not be covered, with suicide being understood as death caused consciously and voluntarily by the policyholder.

Illnesses or accidents prior to the date of effect of the policy, known and not declared by the policyholder, are also not covered.
Absolute Permanent Disability: This is an irreversible physical situation, which completely and permanently prevents you from pursuing any profession or trade, employment or commercial activity. It must be officially recognised by Social Security or another equivalent body. The insured sum will be the result of multiplying the insurance percentage by the outstanding principal of the mortgage as at the date of the claim.
Unemployment and Temporary Disability: applies depending on the client's employment relationship on the date of occurrence of the claim.

For employees with an indefinite contract of more than 13 hours per week (except civil servants and permanent discontinuous workers):
They will have Unemployment or Temporary Disability coverage, which cannot be received simultaneously.
The insured capital is the percentage of the insured loan applicable to the loan repayment quota, on the date of occurrence of the claim, with a maximum monthly amount of €1,350 and a maximum limit of 10 payments per claim and 30 payments in the total number of claims during the term of the policy.
For self-employed workers, civil servants, employees with a temporary contract, permanent discontinuous workers, permanent workers with contracts of less than 13 hours a week, housewives, students or people without paid work:
They will have Temporary Disability coverage.
The insured capital is the percentage of the insured loan applicable to 150% of the loan repayment quota, on the date of occurrence of the claim, with a maximum monthly amount of €2,025 and a maximum limit of 10 payments per claim and 30 payments in the total number of claims during the term of the policy.

What would happen to the insurance policy if I partially or totally repay the linked mortgage?

In the case of partial repayment, the insured sum is modified in the same proportion as the mortgage principal is repaid and, if necessary, there would be a premium return based on the repaid principal.

If the mortgage is repaid in full, the insurance policy would be cancelled and a return would be issued for the unused premium.

Find out more

Calculate your insurance if you are a customer.

CALCULATE INSURANCE

If you have any questions or want to know more, call us at

651 905 667

FAQs

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