Life insurance in Spain: quotes, costs & how to choose the right policy
You've been living in Spain for a while and you've decided it's time to protect your family or cover your mortgage with a life insurance policy. The next step is finding the right one: a policy that suits your situation as a foreign resident, that you can manage in English, and that offers the cover you actually need.
In this guide, we explain what types of life insurance are available in Spain, how much they cost, and what to look for when choosing the right policy and company.
Types of life insurance in Spain
There are three main types of life insurance in Spain, and understanding the differences between them is the first step towards making the right choice:
1️⃣ Term and whole life insurance (vida riesgo): this type of policy covers the death of the policyholder or situations of permanent disability, whether partial or total. If the policy expires and the policyholder is still alive, the insurer is not obliged to pay out. There are two variants:
- Term life insurance: cover is active for a set period of time (for example, 10, 20 or 30 years). This is the most common option for those who want to protect their family during the years of greatest financial responsibility, such as paying off a mortgage or raising children.
- Whole life insurance: cover lasts for the policyholder's entire lifetime, with no expiry date. As it provides lifelong protection, the premium is generally higher.
2️⃣ Savings life insurance (vida ahorro): the beneficiary receives a pay-out when the policyholder reaches a certain age. It works more as a long-term financial planning tool than a pure risk cover product.
3️⃣ Mixed life insurance (vida mixto): combines both of the above. It protects beneficiaries in the event of death, but also guarantees a pre-agreed sum to the policyholder if they survive until the age stipulated in the contract.
💡 Good to know
For most expatriates and foreign residents in Spain, a vida riesgo policy tends to be the most common starting point: it offers straightforward cover and adapts well to the needs of those building their life in the country.
How to choose the right policy and company
Choosing a life insurance policy isn't just about finding the lowest price. There are several factors worth considering before making a decision:
1️⃣ The sum assured
This is the amount your beneficiaries will receive in the event of your death, or that you yourself would receive in the event of a disability claim. To work out the right figure, consider your annual income, outstanding debts (such as a mortgage), household expenses, and the number of people who are financially dependent on you.
2️⃣ The premium:
This is the amount you'll pay periodically for your policy. Payments can be made monthly, quarterly, or annually. As a general rule, annual payment tends to come with a discount.
The premium varies depending on your age, health, lifestyle, occupation and hobbies (certain risk activities such as extreme sports can increase the cost) as well as the sum assured and any additional cover you choose to add, such as total permanent disability or critical illness cover.
3️⃣ Cover and exclusions
Read the policy carefully to understand what is and isn't covered. Some policies exclude certain pre-existing conditions, high-risk activities, or specific professions.
4️⃣ The insurer
Beyond price, consider the company's financial stability, how easy it is to manage your policy, and whether they offer support in English. Working with an insurer that understands your specific situation can make a real difference.
In Spain, two options worth considering are ASISA and Life5. The latter requires policyholders to have been tax resident in Spain for at least six months, making it best suited to those who are already settled in the country.
Death cover
From
7,71
€/month
- Sum assured: €50,000
- Death covered for any cause
- No lock-in period or medical examinations
- Capital advance for funeral expenses
Death cover
From
6,51
€/month
- Sum assured: €50,000
- Death covered for any cause
- Occupational cover included
- Renewable up to age 75
Death and disability cover
From
10,22
€/month
- Sum assured: €50,000
- Death covered for any cause
- Total permanent disability for any cause
- No lock-in period or medical examinations
- Capital advance for funeral expenses
Death and disability cover
From
12,27
€/month
- Sum assured: €50,000
- Death covered for any cause
- Total permanent disability for any cause (up to age 67)
- Occupational cover included
- Renewable up to age 75
How to get life insurance in Spain: quotes, steps and what to expect
Taking out a life insurance policy in Spain is a more straightforward process than it might seem. Here are the typical steps:
Assess your needs
Before requesting any quotes, define what you want to cover. Do you have a mortgage?, dependants?, would you like to include disability cover? Being clear about your needs will help you choose the right sum assured and the most appropriate cover.
Get quotes
Once you know what you're looking for, the next step is to request quotes. You'll need to provide some basic information: your age, sex, whether you smoke, your occupation, and the sum you'd like to insure. At Selectra, we compare the best options on the market so you can find the policy that suits you best, without any hassle.
Complete the health questionnaire
Once you've chosen a policy, the insurer will ask you to complete a medical questionnaire. It's essential to answer all questions honestly: withholding information could result in the policy being cancelled or your beneficiaries' claim being denied. Depending on your age, the sum requested, or your medical history, additional tests may also be required.
Review the policy before signing
Read the terms and conditions carefully, including what is covered and what is excluded. Pay particular attention to any circumstances that fall outside the scope of cover.
Take out the policy and name your beneficiaries
Before signing, make sure you correctly name your beneficiaries and let them know they've been included in the policy. In Spain, there is the Registro de Contratos de Seguros de Cobertura de Fallecimiento, a public register that records the existence of life insurance policies, so that beneficiaries can check whether a deceased person held a policy and with which company.
Ready to buy life insurance in Spain?
Protecting your family or covering your mortgage with a life insurance policy is one of the most important financial decisions you can make as a foreign resident in Spain. And it doesn't have to be complicated.
At Selectra, we help you find the policy that best suits your situation: we compare the top options on the market, advise you in English, and support you throughout the whole process.
Want to find out how much your life insurance would cost? Request your free quote today and receive a personalised proposal with no obligation.