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Tips and Advice, Insurance in Spain

Life Insurance in Spain

Not a favourite topic at any time of year! Life Insurance being one of the more sensitive subjects that people try to avoid talking about because no one wants anything to happen to themselves or to their loved ones, but, the fact is, life insurance is a very important insurance to have.

In this short article I will point out a series of important features of life insurance you should know if you are living in Spain.

Life insurance in Spain is similar to the UK in the sense it is an insurance policy on your life! In the event the unforeseen happens, the policy will pay out to your next of kin.

This agreed amount for life insurance cover or life assurance cover, can serve to cover a loss of income for your spouse, to clear loans or debts, cover inheritance costs or just to make life easy for the beneficiary if something were to happen.

Having a life insurance policy gives you peace of mind that your family is provided for in the case something happens to you. If you have young children it is important to make sure their basic necessities are covered for.

There are different kinds of life insurance, you can elect the basic cover for death only but there are extensions to this cover that may be of interest to you, such as double or triple the sum insured in the event of death by accident or death by road traffic accident respectively.

Further extensions can be chosen to cover you for disability due to accidents or road traffic accidents. Other optional covers include repatriation, critical illness, an advance from the sum insured to pay for inheritance tax, or online assistance in setting up your will …and much more, ask one of the advisers at efpg Insurance Brokers and they will be happy to help.

Other insurance contracts are available such as the Mortgage protection policy that pays out a lump sum directly to the bank to pay off the mortgage in case of something happening to you.

In this case, the insurer will clear the debt directly with the bank and the remaining sum will be passed to the beneficiaries specified in the policy or to their legal heirs.

This guarantees that your family will be able to pay for the mortgage if you are no longer around.

The tax treatment of life insurance in Spain is complicated and differs in every region; the Spanish regulation establishes special tax benefit on inheritance tax for having a life insurance when the beneficiaries are either the spouse, parents or children.

Taxes can be complicated at the best of times, and best advice is to consult a tax adviser regarding any issues that may arise.

Contact efpg now and one of our advisers will be happy to help you set up your life insurance in Spain.

951 81 80 01

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