Term Life Insurance Spain

Term life insurance in Spain (Vida Protección) — affordable, fixed-term protection for expats across Spain. Generali policies arranged by Turner Insurance Specialists, Javea. 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. For the rules in your autonomous community, see our Spanish inheritance tax guide — or click here for our life insurance calculator.