Life insurance in Spain is an insurance product many people don’t like to think about. However, it is probably one of the most important you could take out. Our families are the most important people to us but often people do not provide sufficiently for their loved ones. Whether this is because it is not a nice thing to think about and therefore gets left to one side or lack of time in our busy lives, we should really find the time to sit down and work out how we could ease the financial burden of losing someone in the family.
Life insurance in Spain should not just be considered important for the main earner in a family either. If you are in the fortunate position that only one parent goes to work or one parent only works part-time then who would care for the children if that person was to pass away? The person who was the main earner may have to reduce their hours to look after the family. Alternatively, they may need to employ someone to help with looking after the family. Therefore increasing their outgoings.
You can contract life cover in Spain for a fixed amount. Alternatively, you can request a policy that increases by a percentage each year. This second option helps to mitigate the effects of inflation as the years go on. There is also life insurance for a Spanish mortgage. If you have a repayment mortgage in Spain, then a bank may insist on your having Spanish life cover. We have a product that reduces in line with your mortgage over the repayment period. This helps to keep the cost of life insurance down. It means that in the distressing time of losing someone under the policy the mortgage is repaid.
Life Insurance Spain
Protect you and your family in Spain
Whilst you cannot protect yourselves from the emotional loss of a loved one you can make sure they are financially protected.
Life Insurance Spain – fixed amount
Life insurance in Spain can be provided on a fixed amount basis. The amount of the potential payout stays the same throughout the life of the policy. The premiums are reviewed every twelve months.
Life Insurance Spain – fixed annual increase
We are often told about our savings being eaten away by inflation if we leave them to sit in our current account. Over the years the price of everything goes up. If we don’t earn enough interest then the value of our savings falls behind what it was originally worth.
Spanish life insurance does not have to remain at a fixed level. You can opt for a percentage increase in the amount each year. This could mitigate the rising costs of everything. For example, 100,000 euros of life cover now is not going to have the same real value to your family if you passed away ten years from now. What would 100,000 euros buy or fund in ten years?
Mortgage protection plan Spain
Usually, a bank insists on life insurance cover for a mortgage loan. Whilst they cannot insist you take the Spanish life insurance with them they often make it very difficult not to. Often on renewal, the banks are much more relaxed about whether you keep the policy through the bank’s provider. Check your options with your broker around two months before the renewal date of your existing life policy in Spain. This will give you time to see what the broker can come up with. Then, if appropriate, you will have time to cancel the bank provider’s policy without a problem.
Some banks have a reputation for providing life cover with very high premiums. The annual savings can be substantial if you move to a provider offered through a broker.
These types of life insurance in Spain decrease in line with the repayment mortgage balance. This can help to mitigate some of the annual increase of being older because the reduction in the amount of life insurance cover needed to pay the mortgage falls.
Medical or medical questionnaire?
Most companies try an avoid their clients having to undertake a medical. This is inconvenient for the client and delays a potential sale. It is also an additional cost to the Spanish life insurance company. On many occasions, the insurance company accept a completed health questionnaire from the client. However, once the level of life cover requested reaches a certain figure then the insurer will ask for a medical. Age is also a factor. A medical is more likely the older a person is and the higher the level of cover they are looking for.
Each life insurance company in Spain has its underwriting criteria. In our experience, it is not that often they request for life insurance requires a medical.
Age limits to contract Spanish life cover
One of the problems with life cover is it is not a pleasant thing to think about or discuss with our family. This often means we leave it until later in life and then we can find the cost is prohibitive, we are already unwell or it is too late to apply for cover.
Each life insurance company in Spain will have its underwriting criteria but for example, it is possible to contract a life policy up to the age of 70.
Age limits when Life cover will expire
Life cover can be contracted up to the age of 70 and can run on until the person is aged 80, although this depends on the company you take your Spanish life insurance with.
If you add some options to your standard life insurance policy such as critical illness, for example, these often expire at a younger age than the life cover itself. The life cover might run on to age 80 but the critical illness element may stop at 65.
Best life insurance companies in Spain
We work with some of the best and most well-known life insurance companies in Spain. We provide products from companies with documentation in English if this is important to you.
As an independent broker, we will listen to your requirements and then search our providers for the Spanish life insurance policy that fits your needs best.
How to get a life insurance quote in Spain
The basic information we need to get a quotation is the NIE/DNI number of the person who will be the policyholder, their date of birth, the amount of cover they are looking for, and contact details to discuss the quotation. If you would like to order a quotation now (without obligation) then you can complete the life insurance in Spain quotation request form.