Life Insurance in Spain
Turner Insurance News • October 1, 2018
Life insurance can be a touchy subject for many people. Talking about the possibility of one’s untimely death and what loved one’s will do if you are no longer here can be uncomfortable, however, if you have dependents who rely on you financially to survive, you need life insurance, especially as an expat living in Spain!
For many expats, in order to survive in Spain they need to start their own business, as local jobs are hard to come by and often low paid. In the event that one of you passed away, could you continue to earn a living or live at the same standard as before?
Life Insurance explained…
There seems to be a lot of confusion around life insurance and what it actually is.. Life insurance is a policy which will pay out an agreed sum to your family in the event of your untimely death. It is there to help your loved ones with financial expenses such as paying outstanding debts, mortgages, lost income, and planned educational expenses in the event you are no longer around. Life insurance gives you that peace of mind, that if you are gone, your loved one’s will be alright financially.
There are two main types of life insurance, Term Life Insurance and Whole of life insurance.
Term Life Insurance
Term Life Insurance is the most popular because it is the cheapest. It is fixed at a set amount of time, usually around 5 or 10 years, and will payout in the event of your death during that time. Once the policy expires, nothing is paid out. As you get older Life Insurance Premiums become more expensive. If you are a young couple with small children, this may be all you need. Term Life Insurance could give you that peace of mind. If you are older, it may be worth paying a little extra for Whole of Life Insurance.
Whole Life Insurance
Whole life insurance is Insurance that continues right the way until your death, providing you are able to keep paying the premiums. A payout for this type of insurance is certain to happen. Because of this, premiums are much higher than on Term Time Insurance policies. A whole life policy is a major commitment, and there is no point paying out large premiums for years and years only to fall behind on your payments at some stage and lose your cover.
Whole Life insurance policies can also contain an Investment, which can build up over the years and if they have a surrender value, you may be able to cash these in early and receive a payout if you decided you no longer wanted to pay your premiums. The benefit of choosing a whole of life insurance policy is that you know you will be covered until the day you die. Many Term Life Insurance policies are capped at 70 – 80 years old, meaning that if you reach a certain age, you may not be able to renew.
Mortgage & Loan Protection
As well as Life insurance we also offer Mortgage and Loan Protection Policies. This means that in the event of your death, we contact the bank or building society on your behalf and find out the outstanding debt and pay that off, then any outstanding balance will be passed on to your next of kin or declared beneficiary.
Mortgage Protection Insurance is one of our most popular packages here in Spain as we can save you quite a bit of money compared to the banks. Unfortunately many banks try to force you to buy their overpriced life insurance policies when they provide a mortgage, however, this isn’t legal.
To find out how we could save you money on Mortgage and Loan Protection give us a call on 966 46 16 25 today, or call into our office and speak with one of our consultants.