life insurance Spain
 | Life Insurance in Spain - helpful information for British Expats
Life insurance coverage in Spain - an intro An introduction to Life Insurance in Spain Why Do I Need Life insurance coverage in Spain? life insurance in Spain I have never met a Briton living here in Spain who has life insurance towards the top of his or her list of priorities. Actually, 8 out of 10 of my clients here in 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're well versed in advising their clients about the different types of policy are few in number. 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 go for term, permanent or a combination of both? Let's consider each type in turn. Term life insurance policies offer death benefits only, so if you die, you win (so to speak). And if you live past the length of the term of the policy, you (or, more 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" - so that if you live, you get back a minimum of some of, and often much more than, the amount you spent on your premium. You get this money back either by cashing in the policy or by borrowing against it. However, permanent life insurance is more expensive than term premiums because 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 money has been paid in and also the cash value has earned interest, dividends or both. Whilst the premiums for permanent life insurance coverage in Spain are more expensive, it's also important to note that the premiums for permanent life stay over the years, while the premiums for term life probably increase, if you choose to renew your term policy following 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 when the life insurance policy is encashed when you are still alive. (If you should die, the proceeds from the policy will be paid free of 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 life insurance needs by their use. Prefer a fixed sum for university tuition fees for your kids, 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 the total sum of tuition fees (along with an element on top to cover for inflation). This will ensure that your children can easily his or her education. If you have a mortgage (and you currently don't have 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 just how much cover is therefore about working out how much money 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. life insurance Spain |
