Life Insurance in Spain - helpful information for British Expats

Life Insurance in Spain - an Introduction

An introduction to Life Insurance vacation

Why Do I Need Life Insurance in Spain?

Spain life insurance

I have never met a Briton living here in Spain who has life

insurance towards the top of his or her list of priorities. Actually, 8

out of 10 of my clients within Spain do not have any type of life

insurance whatsoever, or are inadequately covered. Area of the problem,

in my opinion, is wading with the different types of policy

available, and calculating just how much cover they actually

need. And insurance advisers who're well versed in advising their

clients about the different types of policy are few in number.

It is an unfortunate reality the wrong kind of life insurance

can do more harm to your financial plans than simply about any

other financial product today. This article will appear at the

different types of life insurance coverage in Spain available today.

The foremost and most important decision you have to make when

researching life insurance in Spain is whether to go for term,

permanent or perhaps a combination of both? Let's consider each type in


Term life insurance policies offer death benefits only, if you die, you

win (as they say). And if you live past the length of the term of

the policy, you (or, specifically, your family members) get no

money-back. Permanent life policies, sometimes known as

whole of life policies, offer death benefits, and often, a

"cash value" - to ensure that if you live, you get back a minimum of some of,

and often a lot more than, the amount you spent on your premium. You

get this money back either by cashing within the policy or by borrowing

against it.

However, permanent life insurance coverage is more expensive than term

premiums because there is no fixed end date towards the policy, and

just because a portion of the fees are put into a savings programme,

which may be encashed at a later date. The longer the policy has

been in force, the larger the cash value, because more income has

been paid in and also the cash value has earned interest, dividends or


Whilst the premiums for permanent life insurance in Spain are more

expensive, it is also important to note that the premiums for

permanent life stay the same over the years, while the premiums for

term life probably increase, if you choose to renew your term

policy following the expiration of the initial term. That extra premium

paid in early years of the permanent policy gets invested and

grows in value. Another factor to bear in mind is that the gain is

tax-deferred if the life insurance policy is encashed when you

are still alive. (If you should die, the proceeds of the policy

will be paid free of tax to your inheritor.)

The next question is to calculate just how much life insurance cover you

actually need. The first step to assessing just how much life insurance

in Spain you'll need is to categorize your life insurance needs by

their use. Prefer a fixed sum for university tuition fees for

your kids, and your youngest child will graduate in six years,

you might be best advised to take out term insurance as a

short-term hedge against your death, for the total sum of tuition

fees (along with an element on top to cover for inflation). This can

ensure that your children can easily his or her education. If you

possess a mortgage (and you currently don't have any life protection),

and any other debts or loans, then you will need to take out cover

to pay for these debts back, for that length of time that these debts

will remain outstanding.

life insurance Spain

Calculating how much cover is therefore all about working out how

much money you will need to effectively cover all the outgoings

which will continue being need to be paid in your absence. For a

free consultation in your life insurance requirements vacation,

please feel free to call us on 34 650 489 625, email us at, or visit our website at, and you'll discover a wealth of

information on life insurance coverage in Spain for expats.


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