Most Portuguese banks require life insurance when granting a mortgage. This insurance is meant to cover the outstanding loan in case of death (and often also permanent disability). It’s a way to protect both the bank and your family.​
 
But here’s the key point: you’re not required to take the insurance with the bank itself. 
Portuguese law allows you to choose your own life insurance provider, even if that slightly increases the interest rate (spread). In most cases, you still save a lot of money in the long run by switching to an independent insurer.
​
Whether you already signed your mortgage or you're still exploring options, feel free to reach out for a free consultation or insurance simulation. Sometimes a 10-minute chat can save you thousands of euros.