life insurance Spain
 | Life Insurance in Spain - a Guide for British Expats
Life insurance coverage in Spain - an intro An introduction to Life Insurance vacation 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. In fact, 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 exactly how much cover they actually need. And insurance advisers who are well versed in advising their clients on the different types of policy are few and far between. It is an unfortunate reality that the wrong kind of life insurance coverage can do more harm to your financial plans than simply about any other financial product today. This article will look at the different types of life insurance in Spain available today. The foremost and most important decision you must make when researching life insurance in Spain is whether to opt for term, permanent or a combination of both? Let's look at each type in turn. Term life policies offer death benefits only, so if you die, you win (so to speak). 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 often, a "cash value" - to ensure that if you live, you get back a minimum of some of, and often a lot more than, the amount you allocated to your premium. You understand this money back either by cashing in the policy or by borrowing against it. However, permanent life insurance coverage is more expensive than term premiums since there is no fixed end date to the policy, and just because a portion of the premium is put into a savings programme, which may be encashed at a later date. The longer a 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 probably increase, if you opt to renew your term policy after the expiration of the initial term. That extra premium paid in early years of the permanent policy gets invested and grows in value. Another factor to bear in mind is that the gain is tax-deferred if the life insurance policy is encashed when you are still alive. (If you should die, the proceeds from the policy will be paid free from tax to your inheritor.) The next question is to calculate how much life insurance cover you absolutely need. The first step to assessing how much life insurance in Spain you need is to categorize your lifetime 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 as a short-term hedge against your death, for that total sum of tuition fees (plus an element on top to pay for for inflation). This will 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'll need to take out cover to pay these debts back, for the length of time that these debts will remain outstanding. Calculating how much cover is therefore all about working out how much money you will need to effectively cover all the outgoings which will continue to be need to be paid in your absence. For a free consultation in 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 in Spain for expats. life insurance Spain |
