Your bank asks for life insurance with the mortgage
It does not have to be the bank's policy. Allianz Protección Financiera is term life insurance built around a debt: if the insured person dies, it pays the capital still owed. A personal loan works the same way. The difference almost nobody reads is one line in the policy: who gets paid.
- Death from any cause, not only from an accident
- The sum insured can fall with the debt, and the premium with it
- Works for a mortgage and for a personal loan
Who it is for
Four situations. If one of them sounds like you, ten minutes of conversation are worth it.
- You have just signed a mortgage and the bank wants life insurance
- You already have that policy with the bank and do not know what it covers or who gets paid
- You have a personal loan: a car, building work, studies, a wedding
- You are self-employed and the instalment is only paid while you work
There is something here that you do not get elsewhere: the house is in Tenerife and much of the family is not. An inheritance is accepted as a whole, with the property and with whatever is still owed on it. If the debt is already covered, what reaches your family is the house and not next month's instalment. Exactly how that works in your case is for a lawyer or your gestor to say; our job is to make sure the money is there.
What it covers
The main cover
- Death from any cause. Illness or accident, it makes no difference: Allianz pays the sum insured.
Optional, if you want them
- Total and permanent disability. If it is certified, the capital is brought forward and you receive it yourself, while you are alive.
- Payment protection. Pays the loan instalment while you are certified unfit for work. It has a six-month waiting period from the start: during that time this cover does not yet apply.
Two things we would rather tell you now than on the day of a claim: payment protection covers certified sick leave, not losing your job. And serious illness is not part of this product; if you want it, it belongs in ordinary term life insurance, and we can show you both on the same day.
The policy the bank asks for
The bank may require life insurance behind the mortgage. What it may not do is force you to take that insurance with the bank: under Ley 5/2019 you can bring a policy from another insurer with equivalent cover, and your loan conditions must not get worse because of it.
Check who the beneficiary is in your policy. In the policies signed at the bank's own desk, the beneficiary is usually the bank itself, up to the amount of the debt. That means that if you die, the debt is cleared and that is the end of it: your family receives nothing beyond that.
With us the split is visible from the start. If you hand the policy in as security, the bank will be named as beneficiary for what you owe it — that is normal and we are not going to dress it up. The rest of the capital goes to whoever you name, and you can change that later. If there is no requirement from a bank at all, you choose freely from day one.
Bring us what the bank is asking for: the sum insured, the term and the cover it requires. We will tell you whether we can match it, and we will put it in writing. The paperwork with your bank is yours to do; from us you get the policy and the certificate they ask for.
What it costs
You will not read a "from 6 euros a month" here. The price depends on your age, on the capital still to be repaid, on the term, on what you do for a living and on your health. Putting a pretty figure on the website and a different one in the policy is not how we work.
What you can choose
- Decreasing capital: it falls as the debt falls, and the premium falls with it
- Level capital: the same sum insured for the whole term
- Renewable premium: adjusted each year with your age
- Level or single premium: the same all the way through, or one payment at the start
If you pay in instalments there is a surcharge on the annual premium: 1 % half-yearly, 1.5 % quarterly, 2 % monthly. We tell you that beforehand, not afterwards.
To work out the price we need two figures from your loan: the capital still outstanding and the interest rate. The interest rate cannot be a rough guess — it is what the covered instalment is calculated from. Both are in the amortisation schedule your bank gave you.
How it works
- Call us, write on WhatsApp or come to the office with your amortisation schedule. In Spanish, German or English.
- We calculate the price with the cover you want and give you the proposal in writing. It costs nothing and commits you to nothing.
- If you say yes: NIE, health questionnaire and the signed application. We tell you in advance what is needed in your case.
Why with us
- Office in San Eugenio Alto, Adeje. Monday to Thursday, 10:00 to 17:00. You can come in and sit down.
- We deal with you in Spanish, German and English. We will also read through what the bank gave you, with you.
- We are an exclusive Allianz agency. When there is a claim you deal with us, not with a distant phone number.
- 4.8 stars out of 5 on Google, from 52 customer reviews (September 2026). See the reviews (opens in a new window)
Good to know
- Your occupation counts. It is not just another box on the form: it affects the price and whether Allianz accepts. Tell us what it really is.
- If you choose to have the sum insured rise each year, the premium rises too. That is a choice, not a surprise.
- If you already hold term life cover with Allianz and everything together comes to more than 200,000 euros, Allianz carries out a medical interview by telephone. Above 500,000 euros there are medical tests.
- You need to be resident in Spain; we will ask for your NIE.
- No loan behind it, and you simply want to protect your family? Then look at term life insurance.
Frequently asked questions
Do I have to take the life insurance with my bank?
No. The bank may require life insurance tied to the loan, but under Ley 5/2019 you can bring a policy from another insurer with equivalent cover, and your loan conditions must not be made worse because of it. Bring us what the bank is asking for and we will look at it together.
I already have the bank's policy. Can I change it?
You can. The first step is to see what your current policy covers and who the beneficiary is, then set that against what your loan requires. We prepare the policy and the certificate; you give notice to the bank. Nothing is cancelled until the new cover is in force.
Does it pay if I lose my job?
No. Payment protection covers certified sick leave, not unemployment. It also has a six-month waiting period from the start. We say it plainly because it is the most common disappointment with this kind of policy.
What happens when the mortgage is paid off?
If you chose decreasing capital, there is little or nothing left to cover at the end of the term, which is exactly the point. The policy is yours: tell us in good time what you want to do and we will go through it with you.
The loan is in two names. How does that work?
Tell us how the loan is signed and we will build it around that. Normally each borrower has their own sum insured. You get it in writing before you sign anything.
Is it only for mortgages?
No. It works for any loan: a car, building work, studies, a celebration. The idea is the same; the amount and the term change.
General information. The exact cover and conditions are those of the Allianz policy and its nota informativa.