Life Insurance in Spain: What Expats Need to Know

Why Consider Life Insurance as an Expat in Spain?

Life insurance might not be the most exciting purchase you make when moving to Spain, but it could be one of the most important. Whether you have a Spanish mortgage, dependants who rely on your income, or simply want to ensure your family is protected if the worst were to happen, life insurance provides crucial financial security.

Types of Life Insurance Available in Spain

There are two main types of life insurance available to expats in Spain:

• Term life insurance (seguro de vida temporal) — provides coverage for a fixed period, such as 10, 20, or 30 years. If you die during the term, your beneficiaries receive a lump sum. This is the most common and affordable option, and is the type usually required by Spanish mortgage lenders.
• Whole of life insurance (seguro de vida entera) — provides lifelong coverage and includes a savings or investment component. Premiums are higher but the policy builds cash value over time.

Do I Need Life Insurance for a Spanish Mortgage?

Most Spanish banks require you to take out life insurance as a condition of granting a mortgage. The policy must cover at least the outstanding mortgage balance. Banks will often try to sell you their own life insurance product, but you are legally entitled to use any provider — and using an independent broker like Insurance Spain will almost always result in a better price.

How Much Does Life Insurance Cost in Spain?

Life insurance premiums depend on your age, health, lifestyle, and the level of coverage you require. As a general guide:

• A healthy 35-year-old can get €200,000 of term life coverage for as little as €15–€25 per month
• Premiums increase with age — the earlier you take out a policy, the cheaper it will be
• Smokers and those with pre-existing conditions will pay higher premiums

Can I Keep My Home Country Life Insurance When I Move to Spain?

This depends on the terms of your existing policy. Many policies from the UK and other countries do continue to pay out if you die abroad, but some have exclusions for long-term residence outside the country. It is essential to check the small print and inform your insurer of your move. In many cases, taking out a Spanish policy is simpler and more cost-effective.

Get a Life Insurance Quote in Spain

Our bilingual team can compare life insurance options from leading Spanish providers including Mapfre, AXA, Allianz, Aegon, and Helvetia. We will find you the right level of coverage at the best possible price. Contact us today for a free, personalised quote — no obligation, no jargon.