Almost 10 million Spaniards have life insurance to face the day to day. In the last year we have allocated close to 190,000 million euros in contracting this type of product. And it is that their appeal continues to be irresistible due to the tranquility they offer so that our vital plans are not truncated.
That ours never lack for anything is our greatest wish. And having the situation under control in the event of unforeseen events, the only way to fulfill it. Hence, we are increasingly encouraged to take out this type of insurance. Of course, previously we have to meet a series of basic conditions to be able to benefit from their coverage. Some, determined by the insurance company and, others, included in the Insurance Contract Law.
3 basic requirements to get life insurance
As a general rule, companies do not insure people over 65 years of age, with few exceptions . Added to this is the limitation of hiring for those under 18 years of age, as stated in the Insurance Contract Law. Only in some specific cases do they insure minors from 14 years of age with parental consent. In addition, some companies do not admit policyholders with risk professions, such as pilots, firefighters or personnel of the security forces and bodies.
When you go to take out your policy you should also check your health . If you have a chronic or serious condition, it will be more difficult to find an insurance company, although it is not impossible. Usually you must complete a questionnaire in which the company checks your current health status and values that it is optimal to provide coverage. For their part, legally incapacitated persons cannot sign this type of contract, as stated in the Insurance Contract Law.
Finally, you must have your tax residence in Spain fixed . Regardless of whether or not you have Spanish nationality, to benefit from a life policy you must live a minimum of 6 months a year in our country.
Life insurance for different needs
Maybe you still have doubts. Do you really need to buy life insurance? Perhaps on some occasion they have commented to you “I made one by chance, I asked here out of curiosity and very well”. The truth is that it is never too early to start thinking about becoming one. Not only is it useful to cover your family in the event of death or illness, it is also a good way to save.
Within the great variety of offer that exists in the market, we can classify them into three types depending on their purpose :
- Ensure protection against sudden lack of income.
- Ensure economic stability in the future.
- Or a combination of both.
Of death or risk
Death or risk insurance is one of the most widely used. Last year they billed approximately 5,000 million euros. This modality guarantees compensation when the insured dies or suffers a disability, as established in the policy contract. They can be temporary or life-long. The former usually have a renewable duration of one year, while the latter cover the insured until his death.
Thanks to the contracting of this type of insurance, each year 60,000 families can redirect their economic situation in the face of imbalances caused by the unexpected death of a relative. And of these, about 5,000 stop incurring outstanding mortgage debt.
Survival or savings
Survival or savings insurance seeks to be an economic complement for those who hire them. Through them, a term is set to receive a specific monetary amount when it ends. They are perfect for supplementing benefits when it comes time for retirement; to have savings to help overcome economic unforeseen events; or to leave a certain amount to your relatives or friends.
This type of insurance is quite common and has different modalities depending on the amount, the beneficiaries and the duration of the contract agreed upon. And unlike those of risk, the death of the insured is not a sine qua non condition to receive compensation.
Of all the modalities described, the mixed ones are the most complete due to the coverage they offer. They combine the benefits of risk insurance with the benefits of savings. In this way, as the insured you will receive a benefit when the agreed term expires; but also, if you die earlier, the beneficiaries of your policy will receive payment of the corresponding compensation. In addition, the expiration periods that are set in this type of contract usually coincide with retirement, so your entire working life is covered.
With whom do I contract my life insurance?
You meet all the conditions and have chosen the type of insurance that best suits your needs. The time has come to look for the most appropriate option to formalize it. Insurance carrier? Bank? Recent studies suggest that hiring it with a bank can be up to 80% more expensive. Meanwhile, insurers have lowered prices 2.5% in the last year.
Currently the average premium in Spain stands at 304.57 euros per year per policy. However, the increase in longevity in our country opens the door for the price of life insurance to fall between 20% and 30% per annuity in the coming years.
The answer to who to choose to purchase insurance is not simple and requires spending time to compare prices and specific coverage. Our advice is that you always read the fine print carefully and check the exclusions. It is important that you are clear about what your future policy will include and if it really covers all your needs. Sometimes the price may be justified by greater benefits, but sometimes not.