Life Insurance - FAQ

What is life insurance?

Life insurance is a type of personal insurance that covers the risks of the insured party’s disability or death. The main purpose of this type of insurance is to guarantee one’s financial security in the case of a disability and that of any dependent of the insured party in case of death.

With this type of insurance, there are three possible intervening parties: The policy holder, the insured party and the beneficiary.

The policy older is the person who signs the policy and pays the premium.

The insured person is the person whose disability or death determines the payment of the insured capital and the beneficiary is the person who would receive any compensation.

What types of life insurance are there?
  • Temporary life insurance: a periodic premium is paid for a guaranteed capital in the event of death or disability. The policy is renewed annually, and the premium increases each year based on the insured party’s age.
  • Payment protection (or fixed premium) life insurance: a constant premium is paid for a defined term. This type of insurance is mostly used for cases where you wish to guarantee the payment of a mortgage.
Why should I have a life insurance policy?

There are many motives for taking out a life insurance policy:

  • If you are responsible for someone or have children who depend on you and wish to guarantee your family’s future.
  • If you have a risky profession, you frequently drive or practice any dangerous sports.
  • If your home is mortgaged, your mortgage payments will be covered in the event of an accident.
  • Young people take out this type of insurance to protect themselves from a disability that could affect their career.
Can I insure my partner for life insurance?

Yes, you can. You will be the policy holder and your partner the insured.

Is there an age limit?

Yes, the age limit is 70 years old. Therefore, once you reach this age the capital insured has to be lowered to a certain amount.

Which are the key covers of a life insurance?
  • Life insurance covering death by any cause
  • Accident cover including transport or travel
  • Disability permanent or temporary
  • Serious illness cover
  • Life policy to cover your mortgage with the bank in Spain
  • Permanent disability
  • Repatriation
  • Extra cover if in Accident
  • Etc. 
What advantages does it have?
  • Provide financial support to your spouse and children in the event of your death
  • Inheritance tax is very big issue in Spain and having life insurance will help cover these costs
  • Mortgage protection, as banks in Spain require you by law to have a life plan to cover the loan


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