Life

Life Insurance provides security and stability for your family, protecting it from any contingency.

In Spain, widow's pensions are at less than 621 euros a month, and orphans allowances in less than 371.

Why do I need to take out life Insurance?

  • To protect my family’s welfare and to ensure my children’s education.
  • To compensate the income decline due to death or disability.
  • To supplement the widow’s and orphan’s pensions provided by the Social Security.
  • To suplement the disability pension provided by the Social Security.
  • Because it gives me availability to use the Insurance in the event of death, regardless the inheritance received.
  • Because after 1 year, the insurer can not cancel the contract.
  • Because the relationship between coverage/price is excellent.
  • Because to take out insurance is easy and quick.
  • It includes Medical chek-ups at no cost.
  • In the event of disability, the insurance collection is done in advance.

 

Coverages

  • Death for any cause: Payment of the contracted capital, in the event of death, whatever their cause, considering all delimitations and exclusions. 
  • Death by accident: It guarantees a payment equal to the double of the insured capital covered by the policy.        
  • Death by traffic accident: It guarantees a payment equal to the triple of the sum insured if the insured dies as a pedestrian in an accident caused by a vehicle, as a driver or passenger of a land vehicle or as a user of land, sea or air public transport.
  • Complete permanent disability: When the worker is completely disabled to develop his/her activity permanently. If the worker remains invalid due to illness or accident, he/she will receive in advance the capital insured. This payment cancels the policy.

How much do I need to take out?

Each family has different economic needs. Therefore, it is important to keep in mind:

  • The number of children.
  • The annual revenues.
  • The accumulated savings.
  • Possible debts such as a mortgage or a loan.

Generically, an amount equal to three times the current salary could be determined.

What is a life-risk insurance?

Life insurance is a contract between an insured and an insurer where the insurer promises to pay a designated beneficiary a sum of money (the "benefits") in exchange for a premium, upon the death or disability of the insured person. The policy holder pays a premium, either regularly or as one lump sum.

The Premium will depend on the actuarial age of the insured, their profession and the contracted amount.

Health questionnaire and medical examination

Insurance Companies usually require a health questionnaire and, if necessary, a medical examination to know the maximum detail of the health status of their future insured. Thus, they can determine the kind of risk added to their insurance portfolio.

The health questionnaire is mandatory and can be more or less strict depending on the age of the insured and the capital to be insured.

Some companies carry out medical examinations telematically.

Categories

Whole Life Insurance

Life insurance’s most obvious and significant benefit is the lump sum payment it provides when the insured person dies. This lump sum is paid directly to the beneficiary designated in the life insurance policy, and it can be:

  • Lifelong Premium payments: when the premium payments are made during the insured lifetime.
  • Temporary premiums: when the payment of premiums is done according to a limited number of years or until the insurer death if it happens before.

Term Insurance

The lump sum is paid after the insurer death if it happens before the end of the insurance’s contracted period. If the insurer is living after the contracted period, the insurance is canceled.

Taxation

  • Death benefits: The will be subject to Inheritance and Gift Tax wherever the beneficiary and the policyholder are not the same person.
  • Disability benfits: The will be considered Capital Gains and subjected to a 40% or 60% reduction depending on the degree of disability.

What is the meaning of actuarial age?

The actuarial age corresponds to the age of a person taken as a reference to take out Life Insurance.

The actuarial age taken as a reference is that closest to the policyholder’s next birthday. Example. A person born on February 14, 1972 who wants to take out Life Insurance Policy on November 11, 2014. His / her corresponding actuarial age will be 43.