Banks Requiring Life Insurance Policy To Open Account?

[Paige55]

When opening a bank account (savings) here is it standard practice for them to ask you to fill in life insurance policy forms?

 

[FrankPintor]

When opening a bank account (savings) here is it standard practice for them to ask you to fill in life insurance policy forms?

Never happened to me (2 savings accounts opened, one online), nor to anyone I know.

 

[D.B. Cooper]

Never heard of that. Sounds like a scam….can you name the bank in question?.

 

[Paige55]

Santander. I'm not sure it was even a life insurance policy they presented. It was a one-sheet paper from them/Zurich that said 'seguros de vida' but fielded no questions about health history or beneficiaries that normal insurance policies would ask. I believe I must be wrong in thinking it was life insurance though that's what it translates to. Was wondering what typical forms others had to fill out besides basic info to open accounts here as temporary residents with DNI? The bank teller, she didn't go over it, just kind of presented it with all the other papers they'd need me to fill out and sign. The other forms included basic info and (as I'm from the U.S.) the paper asking for info so they can report any money I earn to the good ol' US government.

 

[Neil]

I've seen this with Santander ,in one instance if you lose your debit card and they replace..they want to charge you a Seguro(Insurance policy),that you have to pay but can cancel after one month . Might be similar.

 

[Paige55]

I just spoke to my friend who works at another bank she's said it is a type of security from the bank as Neil states and not a life insurance plan and can be cancelled after a few months. Case cracked. haha Thanks for all of your input.

 

[Rich One]

Insurance never required for a savings account. For a regular bank account with CC and line of credit insurance will cover all debts of a deceased customer.

Seguro de Desgravamen
Es un seguro que cubre el pago de la deuda contraída con una entidad del sistema financiero, en caso de fallecimiento o invalidez total y permanente. Con ello, los herederos del asegurado se verán liberados de la obligación de pago del crédito.

Lien Insurance

It is an insurance that covers the payment of the debt contracted with an entity of the financial system, in case of death or total and permanent disability. With this, the heirs of the insured will be released from the obligation to pay the credit.

 

[steveinbsas]

I have had this coverage for my Santander Rio credit card since I opened a savings account in Bahía Blanca in 2012.

They gave me a Visa credir card and told me the insurance would pay the balance in full in the event of my demise.

Ten years ago my credit limit was $5000....a year ago it was a little over $100.000...last month it was $184.000...and now it is just under $300.000.

I have never asked to have my credit limit increased. I belive the increases are based on my purchase and payment history. I am very pleased with Santander Rio for this reason and I will never Santander Rio a "shitty" bank, as one member did last year.

If I remember correctly, that was because he did not get a credit card from Santander Rio (or he got one and the credit limit was very low), even though he had Argentine income and pays Aregetine income taxes...both of which I do not ...and never have.

 

[steveinbsas]

I just spoke to my friend who works at another bank she's said it is a type of security from the bank as Neil states and not a life insurance plan and can be cancelled after a few months. Case cracked. haha Thanks for all of your input.

That's very interseting to know. I'lll have to check to see how much I am paying (if I am still paying).

.As I am now paying just over $10.000 peso per month for my car and home owner's insurance combined, I imagine it isn't much.

Someone once posted that the CC monthly feee's were high in Argentina, but all I remember is looking at my statement and thinking they are low, but that's just my POV,

 

[Paige55]

I have had this coverage for my Santander Rio credit card since I opened a savings account in Bahía Blanca in 2012.

They gave me a Visa credir card and told me the insurance would pay the balance in full in the event of my demise.

Ten years ago my credit limit was $5000....a year ago it was a little over $100.000...last month it was $184.000...and now it is just under $300.000.

I have never asked to have my credit limit increased. I belive the increases are based on my purchase and payment history. I am very pleased with Santander Rio for this reason and I will never Santander Rio a "shitty" bank, as one member did last year.

If I remember correctly, that was because he did not get a credit card from Santander Rio (or he got one and the credit limit was very low), even though he had Argentine income and pays Aregetine income taxes...both of which I do not ...and never have.

Thank you, Steve. This is very helpful. I think I'll be banking with them as they were very kind. I just needed to check some things out first and make sure this was legit. As systems are different here than what I'm used to I just didn't want to rush into anything that wasn't above board without doing a bit more research. I admit I was a bit overwhelmed so said I'd be back next week. Your answer makes clear what I was wondering about. They may have been offering a credit card account rather than simple savings. I wasn't sure I was able to get that as a temporary resident on a rentista visa, so assumed it was for basic savings account and felt a bit uneasy. While I wasn't needing a credit card, it could be useful to build credit. Will go back with a bit of clarity and my wits about me and speak to the teller again.