life insurance Spain
Life Insurance in Spain - a Guide for British Expats
Life insurance coverage in Spain - an Introduction
An introduction to Life Insurance in Spain
Why Do I Need Life Insurance in Spain?
life insurance in Spain
I have never met a Briton living here in Spain who has life
insurance at the top of his or her list of priorities. Actually, 8
out of 10 of my clients within Spain do not have any type of life
insurance whatsoever, or are inadequately covered. Area of the problem,
in my opinion, is wading through the different types of policy
available, and calculating just how much cover they actually
need. And insurance advisers who're well versed in advising their
clients on the different types of policy are few in number.
It is an unfortunate reality that the wrong kind of life insurance
can do more damage to your financial plans than simply about any
other financial product today. This article will look at the
different types of life insurance coverage in Spain available today.
The foremost and most important decision you have to make when
researching life insurance coverage in Spain is whether to go for term,
permanent or a combination of both? Let's look at each type in
turn.
Term life insurance policies offer death benefits only, so if you die, you
win (as they say). And if you live beyond the length of the term of
a policy, you (or, specifically, your family members) get no
money-back. Permanent life policies, sometimes known as
whole of life policies, offer death benefits, and sometimes, a
"cash value" - to ensure that if you live, you get back at least some of,
and often a lot more than, the amount you spent on your premium. You
get this money back either by cashing within the policy or by borrowing
against it.
However, permanent life insurance coverage is more expensive than term
premiums because there is no fixed end date to the policy, and
because a portion of the fees are put into a savings programme,
which may be encashed at a later date. The longer the policy has
been in force, the higher the cash value, because more income has
been paid in and the cash value has earned interest, dividends or
both.
Whilst the premiums for permanent life insurance in Spain are more
expensive, it's also important to note that the premiums for
permanent life stay the same over the years, while the premiums for
term life insurance probably increase, if you opt to renew your term
policy after the expiration of the initial term. That extra premium
paid in the early years of the permanent policy gets invested and
grows in value. Another step to bear in mind is that the gain is
tax-deferred if the life insurance policy is encashed whilst you
are still alive. (If you should die, the proceeds from the policy
will be paid free of tax to your named beneficiary.)
The next question is to calculate how much life insurance cover you
actually need. The first step to assessing how much life insurance
in Spain you'll need is to categorize your life insurance needs by
their use. If you need a fixed sum for university tuition fees for
your children, and your youngest child will graduate in six years,
you may be best advised to take out term insurance like a
short-term hedge against your death, for that total sum of tuition
fees (along with an element on top to pay for for inflation). This can
ensure that your children can finish his or her education. If you
have a mortgage (and you currently haven't any life protection),
and any other debts or loans, then you will need to take out cover
to pay for these debts back, for the length of time that these debts
will remain outstanding.
Calculating just how much cover is therefore all about working out how
much cash you will need to effectively cover all of the outgoings
which will continue being need to be paid while you are away. For a
free consultation on your life insurance requirements vacation,
please feel free to call us on 34 650 489 625, email us at
lifeinsurancespain@gmail.com, or visit our website at
www.lifeinsuranceinspain.es, and you'll discover a wealth of
information on life insurance coverage in Spain for expats.