Protect yourself before you need to — insurance, rights and autonomy

In 5 min you'll know: that you need at least one health insurance policy and know exactly what it covers and excludes

In Block 1, Lesson 9, we talked about financial security: the emergency fund that protects you when things go wrong. But there are events an emergency fund can't cover — a serious accident, a prolonged illness, a house fire, a lawsuit. That's where insurance comes in: you transfer the financial risk to a company in exchange for a monthly premium. The rule: you have at least one health insurance policy and you know exactly what it covers and what it excludes.

Before you continue: when dissecting the PPR (retirement savings plan with tax incentives), did you discover that total costs can exceed the tax benefit — does that apply to other products too?

(Answer in the next paragraph.)

The problem with insurance in Portugal is that most people don't read the policy. They sign the contract, pay the premium and discover the exclusions at the worst possible moment — when they need to make a claim. A health insurance policy with a 6-month waiting period covers nothing in the first 180 days. A multi-risk home insurance policy without flood cover doesn't pay for water damage. A life insurance policy with an "extreme sports" exclusion won't pay out if the accident happened during a high-risk activity. Read the general conditions — or at least the exclusions — before you sign.

Mandatory insurance in Portugal is limited but does exist: motor third-party liability insurance (if you own a car), multi-risk home insurance (mandatory if you have a mortgage, and in many tenancy agreements). Recommended but non-mandatory insurance includes: health insurance (if you're not adequately covered by the SNS), life insurance (if you have dependants or a mortgage), and personal accident insurance (if you play sport or work in a high-risk environment).

The ASF (Portuguese insurance and pensions regulator) is the body that supervises insurance companies in Portugal. If you have a dispute with your insurer — denied cover, delayed payment, unfair clauses — you can file a complaint with the Centro de Arbitragem de Seguros or the Livro de Reclamações. If the insurer isn't registered with the ASF, it's not an insurance company — it's a risk disguised as protection.

Young people's financial autonomy isn't just about earning money — it's about knowing how to protect what you earn. A young person without insurance and without an emergency fund is one accident away from a financial crisis that could last years. Protect yourself first. Then invest.

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Notice: Mowei is a financial education and comparison platform. We are not advisors authorised by the ASF. This lesson is general information, not personalised advice. For decisions about specific products, consult an intermediary registered at www.asf.pt.

Check what your health insurance covers and excludes (2 min) →

Your promise: This fortnight, Tuesday at 7pm, I will open my health insurance policy and read the exclusions.