THE ESSENTIALS
Before you start
- The current requirement in Article 11(7) is limited to death cover.
- Other cover may be offered with reduced borrowing costs.
- Consider protection needs and commercial conditions separately.
The current rule separates requiring from offering
Article 11(7) of Decree-Law 74-A/2017, as amended by Law 14/2026, provides that only death cover may be required in life insurance which the lender comes to require from a consumer within that framework. Additional cover, such as disability or incapacity, may be offered to reduce fees or other borrowing costs.
This does not make disability protection irrelevant to a family, or automatically amend an existing policy. This guide addresses the requirement when arranging insurance within the rule's scope; it does not determine the terms of an individual contract.
Sources: Diário da República — Law 14/2026, Article 3: amendment to Article 11(7); accessed 30 October 2026 ↗
Sofia gives each item a purpose
In the fictional example, Sofia wants to preserve the household budget for her two children. The expression 'complete life insurance' does not identify what she needs for the loan, what is being offered on different price terms, or what protection she wants to choose for herself.
With Clara, she makes three columns: the lender's stated requirement; additional cover offered; and questions about family protection. She places each benefit in the relevant column and requests a written explanation of anything she cannot yet classify. She does not fill missing answers with assumptions.
Ask the lender for figures with and without the condition
Where additional products or services bring reduced borrowing costs, Article 11 provides for information on the APR and the instalment associated with each discount item. APR expresses the annual total cost of credit; it is different from the insurance premium.
Request comparable illustrations and identify the condition attached to each reduction. Sofia records the insurance premium, financing costs and cover separately. An isolated monthly price cannot show every difference. The lender must confirm the mortgage terms.
Optional protection still deserves its own review
Clara does not choose between more protection and lower spending for Sofia. She helps her record the event she wants to protect against, the benefit described and the cost she can accommodate. Having two children makes reliance on income a useful discussion; it does not automatically determine the right solution.
If disability cover is included, read its definition, requirements, age limits and exclusions. Similar abbreviations do not establish identical benefits. Before changing an existing policy, clarify the procedure and the effect on borrowing terms.
Bring a specific question to your insurance request
To compare insurance, select Life in your RMACHADO request and explain that you want to distinguish death cover from additional benefits for a Portuguese mortgage. Do not publish loan documents or medical information in the initial contact.
RMACHADO assists with the insurance component. This article neither approves credit nor changes borrowing terms, and it confirms no risk acceptance or cover. Keep the proposal, the lender's response and the version of the insurance terms used for the comparison.
KEEP THESE QUESTIONS
Your checklist for the next conversation
- Separate the requirement for obtaining the loan from an offer with different commercial terms.
- Request a written explanation of each benefit and discount condition.
- Compare insurance and borrowing costs using equivalent documents.
- Read the protection you choose before changing an existing policy.
FROM THE ARTICLE TO YOUR SITUATION
Let us discuss your situation
Tell us what you want to protect. We review your request and help compare relevant terms. Requesting a quotation does not activate insurance.
Sources and transparency
Content updated on .
Consultation dates are stated in individual references when available.
Numerical examples are fictional and explain concepts. Editorial interpretations are identified in the text.
- Diário da República — Law 14/2026, Article 3: amendment to Article 11(7); accessed 30 October 2026 ↗
- Lisbon Regional Prosecutor-General's Office — Decree-Law 74-A/2017, Article 11, updated with Law 14/2026; accessed 30 October 2026 ↗
Information from RMACHADO GROUP. This is not an insurance offer or individual advice. Covers, acceptance, exclusions, sums insured and costs depend on the policy. The intermediary does not underwrite the risks.