Life Insurance for Expats in Spain

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As an expat living in Spain, having life insurance provides protection for your family in the event of your death. It can also provide you with additional benefits, such as the ability to protect a mortgage for your property in Spain. This article will explore the benefits of life insurance for expats in Spain, as well as important information to keep in mind and the different types of life insurance available.

Benefits of Life Insurance in Spain 

Life insurance is a subject many individuals avoid talking about. It is inevitable that death comes at some point, and while we all hope that it does so in our old age, it is still important to take precautions in case something unexpected occurs.

In the event of your death, your family may not have the required qualifications or working skills to support themselves while living abroad. Moreover, even if they do, finding a job in Spain can be challenging due to language barriers. The situation would be especially challenging if you have children, as your spouse’s salary may not be enough to sustain them if you are the main breadwinner.

Another benefit of having life insurance is that Spanish banks often consider it a requisite for individuals to take loans and mortgages on properties. As a side note, it is advisable to avoid acquiring life insurance directly from a bank, as their policies tend to be considerably more expensive than other options. 

Difference Between Life Assurance & Life Insurance

It is important to understand the difference between life assurance and life insurance. Life insurance is set for a specific period of time, meaning if you outlive the term of the policy, your chosen beneficiaries will not receive any payment. Life assurance, on the other hand, covers you not for a specific period of time but for life. 

Types of Life Insurance

Term Assurance 

This is the most common and also the cheapest type of life insurance in Spain. This type of life insurance provides coverage for a specific period of time. For example, in the event of a ten-year mortgage, you may wish to contract a ten-year term assurance. Under term assurance, you pay an annual or monthly fixed premium and the insurer will only pay out the sum assured in the event of your death during the chosen term. When the period ends, no refunds or return on premiums are given. 

Whole of Life Insurance 

As the name suggests, this type of life insurance involves coverage for your entire life. Due to this, the premiums are higher since the insurer knows that they inevitably will have to pay out. If you opt for this kind of insurance, you need to be aware that it is a long-term financial commitment and you must be ready to pay the premiums for life. 

Life & Mortgage Protection Insurance

This type of insurance is suitable if you have economically dependent relatives that may require financial help in the case of your death. If that is the case, opting for life and mortgage protection insurance will give you and your family peace of mind should the worst-case scenario occur. In the event of death, your mortgage debt would be paid off, and your loved ones would own the family home, and not have to worry about future rent or mortgage payments. 

Funeral Insurance

Funeral expenses can reach upwards of several thousand dollars. Costs are rising all over the world, and Spain is no exception. For this reason, it is important to plan ahead to avoid having relatives experiencing financial hardships. With this kind of insurance, in the event of your death, the beneficiary will receive the death benefit of your policy, which can be used towards funeral costs. 

Personal Accident and Injury Insurance

This kind of insurance is designed to pay out in case you suffer from a serious injury or death as a result of an accident. The sum assured depends on the severity of the injury, ranging from loss of a finger or toe, loss of vision in an eye, all the way to loss of limb or severe paralysis. This type of cover is very important if you have a high-risk manual job, or take part in hazardous sports such as spelunking.

Next Steps 

Now that you know the basics about life insurance in Spain, it’s time to choose the most suitable option for your situation. At SaveSavvi.com you can get an instant FREE quote in seconds, and can take out life cover without the need for a medical examination – visit us today!

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