Every year, a survey is carried out in order to compare life insurance offered by banks and insurance companies, The results of this study, carried out by INESE in collaboration with the consultancy firm Global Actuarial (companies that provide reliable information on the insurance and banking sectors), have been reported in the country's financial newspapers, such as Cinco Días. Let's take a look at the results reflected in it.
Premises of the life insurance survey
This report is carried out using the technique of “mystery shopping” and took place between March and April 2016, so it is very recent. It assesses the tariffs offered at 27 entities, both banks and insurers. Among them we can mention: Caixabank, Santander, BBVA... And to AXA, Zurich, etc.
The age ranges assessed were between 30 and 50 years old, and capital between €30,000 and €200,000.
Conclusions of the life insurance comparative study
They are no different from the report that was carried out the previous year:
The life insurance of the banks are 30 to 35% more expensive than in an insurance company. (even more depending on the age group).
In average figures: the average premium for 120,000 euros (Death + Permanent Disability Absolute)
- 30 years42.1% more expensive (Banks 269.22 euro vs. 155.77 euro)
- 40 years34.6% (Banks EUR 443.24 vs. EUR 289.87)
- 45 years32.6% (Banks EUR 694.80 against EUR 468.40)
- 50 years32.9% (Banks 1,113.17 euros vs. 747.45 euros)
The cheaper premium of all is the one offered by the British company Aviva (now merged with Saint Lucia). On the other hand, we can see that all the highest price proposals are from insurance companies controlled by banks. The most expensive is BBVA, followed by Banco Santander and Banco Sabadell.
As Isidre Martínez Ivars, author of the study, explains: “We can validate that the life-risk tariffs applied by insurance companies are significantly lower, between 30 and 35% on average, than the tariffs applied by banks”.
Where do I take out mortgage insurance?
In conclusion, the banks can oblige us to take out life insurance. when taking out a mortgage, but what they cannot force us to do is to take it out with them. It is true that the mortgage conditions would worsen (but always around 0.1-0.2%), but, on the other hand, we would save a lot of money on life insurance. Our advice is to compare these savings and see if the change is worthwhile. In most cases it is favourable.
If you want us to do that study with you, call or write to us and tell us that you want to improve the conditions of your life insurance.
