A proven product that everyone should protect themselves with. Life insurance is a necessary purchase that has the benefit of giving you and your family peace of mind.
There are many different types of cover that can be tailored to suit your needs and lifestyle. Life insurance not only provides financial protection in the event of death but it is also a savings product that offers benefits that are becoming ever more extensive and customisable, so it is not surprising that, after car and home insurance, it is the third most contracted insurance cover in Spain. The average profile of a person who contracts life insurance is a married male aged between 35 and 44 years old, but it is never too late or early to take out a policy.
1. Arrange a mortgage to buy a house In Spain, six out of ten homes are bought with a mortgage.
In this case, it is advisable to take out life insurance because, in case of death or permanent disability of the person who contracted the mortgage, the insurer will take over the payments to the bank and remove your partner or relatives from the economic responsibility that could be difficult to continue with. In fact, with most banks it is a pre-requisite as a guarantee before signing the mortgage. Until recently, banking entities conditioned their mortgage lending with an “obligation” to contract some linked products, such as Life insurance. But since a few years ago, with the approval of the European Parliament of the Mortgage Credit Directive, banks are prohibited by law from linking a mortgage to the purchase of insurance. You only need that your insurance company includes a clause in your policy registering your lending bank as the mortgage beneficiary. In that way, you comply with the request of the bank but you also save money. You could even save a difference of 700 euros as the products offered by the bank can be up to 300% more expensive.
2. Start a family Life insurance can also be a guarantee for those who are thinking about starting a family.
It should be taken into account that raising a child in Spain can be expensive. It has been estimated that a baby can cost 14,266 euros during its first year of life and 14,056 euros during the next two. On average, a child can represent the disbursement of 1,183 euros per month during its first three years, which represents 80.78% of the average monthly net salary of a worker. It will depend on each person’s standard of living, but before the child turns 18 the parents could have spent between 115,000 and 350,000 euros. If at any time one of the parents dies, it will be difficult for the family to maintain the same rhythm of life. In those cases, although the personal loss will be irreplaceable, life insurance could guarantee the necessary capital to meet family expenses. With Liberty Seguros, even if the insured dies in an accident along with his/her spouse and they have children younger than 18, the beneficiaries will receive double the sum insured.
3. Protect your income level Last year there were 3,796 serious occupational accidents in Spain. Of these, 618 had fatal consequences.
The possibility of suffering an accident at work or outside that causes a permanent or temporary disability exists, so it is a wise choice to protect your income level. It will depend on each policy, but the insured can receive an advance payment of the contracted capital in case of temporary or permanent incapacity that prevents them from working and, therefore, affects their income, whether as a result of an accident or illness. In fact, with Liberty Seguros, the insured will be advanced the sum insured for death if he/she is diagnosed with one of the following serious illness or needs one of the following operations: cancer, heart attack, cardiovascular accident, kidney failure, bypass surgery, paralysis and transplant of vital organs, in accordance with the terms established in the special conditions of the policy.
Sources: (2018, May) Profile of life insurer buyer in 2017. In: ICEA. (2018, February) Almost 42% of retirement pensions in Spain are lower than the SMI. In: El Economista. (2018, February) Occupational Accident Statistics 2017 in Spain. In: GTG. Paola, M. (2017) How much does it cost to have a child? In: La Vanguardia. (2013) A burial costs an average of 3,545 euros. In: OCU.