Join Talk Quesada

Welcome to Talk Quesada! My name's Alex and this is my website all about Ciudad Quesada in Spain. Talk Quesada is free to sign up and use so register below!

Single Premium Life Insurance

Single Premium Life Insurance

Postby Angelaandstuart » Thu Sep 29, 2016 12:45 pm

When we took out a mortgage with Sabadell, a condition was that we had to pay a single premium for life/mortgage insurance. We had no idea this would be the case but paid it anyway to ensure we got the mortgage. Question is, does anybody know if you get a refund if you pay off the mortgage early. We paid around 7000 euros a year ago and hope to pay the mortgage off early next year! It seems daft to have mortgage protection if we have no mortgage!
Angelaandstuart
 
Posts: 145
Joined: Thu Aug 13, 2015 6:04 am
Location: La Finca Golf
Which part of Spain are you from?: La Finca Golf
Gender: Male

Re: Single Premium Life Insurance

Postby Jan » Thu Sep 29, 2016 2:05 pm

Angelaandstuart wrote:When we took out a mortgage with Sabadell, a condition was that we had to pay a single premium for life/mortgage insurance. We had no idea this would be the case but paid it anyway to ensure we got the mortgage. Question is, does anybody know if you get a refund if you pay off the mortgage early. We paid around 7000 euros a year ago and hope to pay the mortgage off early next year! It seems daft to have mortgage protection if we have no mortgage!


Isn't this the same as PPI that many of us were forced to pay in the UK with our mortgages years back and now are being compensated for having to pay these unnecessary payments?
Maybe someone can tell us why Spain is still insisting on this and if it's the same thing? If it is life insurance then that should not be obligatory.

Jan
Like us on Facebook to keep in touch: Facebook.com/TalkQuesada
User avatar
Jan
Site Admin
 
Posts: 11193
Images: 164
Joined: Mon Oct 17, 2011 8:34 pm
Which part of Spain are you from?: Lo Marabu Dona Pepa
Gender: Female

Re: Single Premium Life Insurance

Postby Stephen47 » Fri Sep 30, 2016 8:18 am

Hi, we were surprised when Sabadell presented us with a bill for a single premium insurance and quite cross because they didn't say this when we accepted the mortgage offer! Anyway the answer is YES, they do pay back part of the premium if you repay your mortgage early as we have just experienced (27/9/16). However they do take a hefty % of compensation for early repayment so be aware of that expense.
Stephen47
 
Posts: 106
Joined: Wed Sep 28, 2016 8:52 am
Which part of Spain are you from?: Benijofar
Gender: Male

Re: Single Premium Life Insurance

Postby Angelaandstuart » Fri Sep 30, 2016 1:57 pm

Thanks Stephen,

That is good news and yes, I just knew they would help themselves to a large chunk of compensation! Not expecting such a hefty bill during the purchasing process really is poor practice and we were fortunate that we had enough to cover it. I guess not everyone will!
Angelaandstuart
 
Posts: 145
Joined: Thu Aug 13, 2015 6:04 am
Location: La Finca Golf
Which part of Spain are you from?: La Finca Golf
Gender: Male

Re: Single Premium Life Insurance

Postby manxmunk » Fri Sep 30, 2016 4:17 pm

took our mortgage out with bank inter, and refused to take out the insurance, had no problem with them whatsoever. I think that your bank has used the hard sell tactic on you.
manxmunk
 
Posts: 696
Joined: Tue Jul 26, 2016 11:20 am
Which part of Spain are you from?: La Marina
Gender: Male







  • Similar Topics
    Replies
    Views
    Last post

Return to Insurances, Wills & Abagados/Solicitors in Spain

 
 

Who is online

Users browsing this forum: No registered users and 2 guests

Login
Username:


Password:


Remember me


Forgot password?

Register now

Find in Quesada
What are you looking for in Quesada?: