Term life insurance in Spain (Vida Protección) — affordable, fixed-term protection for expats on the Costa Blanca. Generali policies arranged by Turner Insurance Specialists, Jávea. Free English quote — 966 461 625.
What is Term Life Insurance in Spain?
Term life insurance provides a fixed lump sum payment to your named beneficiaries if you die during the policy term. It is the most straightforward and affordable form of life insurance — you choose the coverage amount, the term length, and your beneficiaries. If you outlive the term, the policy ends. If you die during the term, your beneficiaries receive the full sum insured.
For expats in Spain, term life insurance is most commonly used to cover a Spanish mortgage, provide income replacement for dependants, or protect a business partnership during the working years.
Capital Options — Constant vs Increasing
Constant Capital
The sum insured remains fixed throughout the policy term. €200,000 of cover stays at €200,000 regardless of when a claim is made. This is the standard option and is appropriate for most situations — particularly when used to cover a mortgage (where the outstanding debt decreases anyway) or to provide a fixed inheritance.
Increasing Capital
The sum insured increases each year, typically linked to inflation or a fixed percentage (e.g. 2–3% per year). This ensures the real purchasing power of the payout keeps pace with the rising cost of living over time. Premiums are slightly higher than constant capital. Recommended if the policy is intended to maintain your family's standard of living over a long term.
Approximate Premiums — Term Life Insurance Spain
Age 35, €200,000 cover, 20-year term: approx. €12–€18/month
Age 40, €200,000 cover, 20-year term: approx. €16–€25/month
Age 45, €200,000 cover, 20-year term: approx. €22–€35/month
Age 50, €200,000 cover, 15-year term: approx. €32–€48/month
Age 55, €200,000 cover, 15-year term: approx. €45–€65/month
Premiums are indicative only and depend on health, smoking status, sum insured, term and optional extras selected. Contact Turner Insurance for a personalised quote.
Optional Extras — Term Life Insurance
Double capital — accidental death: Doubles the payout if death results from an accident (road accident, fall, etc). Cost: approx. €3–€8/month additional.
Critical illness cover: Pays a lump sum on diagnosis of specified serious illnesses including cancer, heart attack and stroke. Cost: approx. €8–€20/month depending on age.
Permanent disability: Provides a monthly income if total permanent disability prevents you from working. Cost: approx. €5–€12/month.
Waiver of premium: If you become totally disabled and cannot work, future premiums are waived — your cover continues at no cost to you. Cost: approx. €2–€4/month.
Inheritance Tax Implications
Life insurance proceeds paid directly to named beneficiaries are subject to ISD (Impuesto sobre Sucesiones y Donaciones) in Spain. The tax treatment varies significantly by region — in Madrid, direct descendants pay 0%. In Valencia, generous exemptions apply. See our Inheritance Tax in Spain guide for full regional breakdowns, and our whole life insurance page for more on long-term inheritance planning.
Frequently Asked Questions — Term Life Insurance Spain
Term life insurance (seguro de vida temporal or Vida Protección) pays a fixed lump sum to your named beneficiaries if you die during the policy term. If you outlive the term, the policy simply ends with no payout. It is the most affordable form of life insurance and is widely used by expats in Spain to cover mortgages, dependants, and income replacement during working years.
Term life insurance in Spain is available for periods of 10, 15, 20, 25 or 30 years. The term should ideally align with your financial obligations — your mortgage term, until your children become financially independent, or until you reach retirement age. Generali offers flexible term options up to age 75 at the end of the policy term.
Term life insurance premiums are not tax deductible for income tax purposes in Spain. However, the proceeds paid to beneficiaries may be subject to inheritance tax (ISD — Impuesto sobre Sucesiones y Donaciones) depending on the region and the beneficiary's relationship to the policyholder. In Valencia, direct descendants benefit from significant ISD exemptions. See our inheritance tax guides for full regional details.
Yes — term life insurance with pre-existing conditions is available in Spain, but conditions are assessed individually. Minor conditions may be accepted at standard rates; more significant health issues may result in a loading (higher premium) or exclusion of the specific condition. A medical questionnaire is required for most applications. For amounts under €100,000, no medical examination is required in most cases.
Constant capital means the sum insured (the lump sum paid on death) stays the same throughout the entire policy term. If you take out €200,000 of cover, your beneficiaries receive €200,000 whether you die in year one or year nineteen of the policy. This is the standard option for most term life policies.
Increasing capital means the sum insured grows each year, typically linked to inflation or a fixed percentage (e.g. 3% per year). This ensures the real value of the cover does not erode over time due to inflation. Premiums are slightly higher than constant capital but the protection provided keeps pace with rising costs.
Generali's Vida Protección term life policies include a conversion option on some plans, allowing you to convert to a whole life policy at the end of the term without further medical underwriting. This is useful if your health changes during the term and you want to maintain lifetime cover. Ask Turner Insurance for details on which plans include this feature.
Term life insurance in Spain is very affordable compared to the UK. Indicative monthly costs for €200,000 coverage: Age 35 (20-year term): approximately €12–€18/month. Age 45 (20-year term): approximately €22–€35/month. Age 55 (15-year term): approximately €45–€65/month. Premiums depend on age, health, sum insured, term length and whether optional extras are added. Contact Turner Insurance for a personalised quote.
Optional extras available for Generali term life insurance include: double capital in the event of accidental death (doubles the payout if death results from an accident); critical illness cover (lump sum payment on diagnosis of specified serious illnesses); permanent disability (monthly income if you cannot work due to disability); waiver of premium (premiums are waived if you become disabled and unable to work).
Yes — term life insurance is available to non-residents and those in the process of obtaining Spanish residency. You do not need to be a Spanish resident to take out a Generali term life policy through Turner Insurance. Your passport number is sufficient to start the application. All documentation is in English and the policy is valid for your beneficiaries regardless of where they reside.
More questions?Contact us — free English advice — 966 461 625.