Portugal limits mandatory mortgage life insurance to death coverage
Portugal's new Law No. 14/2026, which took effect on 27 April, changes the requirements for life insurance linked to mortgage credit. Banks can now only obligate borrowers to obtain coverage for death; additional policies such as Invalidez Absoluta e Definitiva (IAD) or Invalidez Total e Permanente (ITP) may be offered but are optional.
Consumers may replace the mandatory life insurance with other legally accepted guarantees, such as a mortgage on another property, a personal guarantee, or other approved securities. In married or cohabiting couples where one partner has a disability level above 60 %, the insurance requirement can be applied solely to the other partner, giving the consumer discretion.
The legislation also reinforces the “right to be forgotten,” extending protection so that medical conditions including cancer, HIV, diabetes and hepatitis C cannot be used by insurers or lenders to raise premiums, deny coverage, or hinder access to credit, provided statutory conditions are met.
Entities: Banks · Law No. 14/2026 · Mortgage borrowers · Portuguese Government · Right to be forgotten
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 2 SOURCES] Law No. 14/2026 entered into force on 27 April 2026 in Portugal, altering mortgage‑linked life‑insurance requirements. (Portugal)
- [● 2 SOURCES] Consumers can substitute the mandatory life‑insurance with other legally admissible guarantees such as a mortgage on another property or a personal guarantee. (Portugal)
- [● 2 SOURCES] Additional coverages such as Invalidez Absoluta e Definitiva (IAD) or Invalidez Total e Permanente (ITP) are optional for consumers. (Portugal)
- [● 2 SOURCES] The law expands the right‑to‑be‑forgotten, prohibiting insurers or lenders from using cancer, HIV, diabetes or hepatitis C to raise premiums, deny coverage, or restrict credit access when legal stip‑s (Portugal)
- [● 2 SOURCES] Banks may only require death coverage in the mandatory life‑insurance component of a mortgage credit. (Portugal)
- [● 2 SOURCES] For married or cohabiting couples where one partner has a disability level above 60 %, the life‑insurance requirement may be applied only to the other partner. (Portugal)