Life Insurance in Spain for Expats
Protect your family and your mortgage — life insurance arranged in English by independent brokers on the Costa del Sol.
Do You Need Life Insurance as an Expat in Spain?
Moving to Spain changes your financial picture in ways that aren’t always obvious. If you have a Spanish mortgage, dependants who rely on your income, or simply want the peace of mind that comes from knowing your family is protected, life insurance in Spain deserves careful thought.
- You have a Spanish mortgage — If you die before paying off your mortgage, the debt does not disappear. Mortgage protection life insurance covers the outstanding balance, ensuring your home stays in the family. Spanish banks will often try to sell you their own in-house life insurance — these policies are frequently overpriced. You are not obliged to use them.
- Your family depends on your income — If you have a partner, children or other dependants, a life insurance policy provides them with financial security in the event of your death.
- You’re self-employed (autónomo) — As an autónomo, there is no employer-provided death-in-service benefit. Life insurance fills that gap.
- You want to cover funeral costs and estate expenses — Spanish inheritance law is complex, particularly for non-EU nationals. A life insurance policy ensures funds are available immediately.
Types of Life Insurance Available in Spain
Term Life Insurance (Seguro de Vida Temporal)
Covers you for a fixed period — typically 10, 15, 20 or 25 years. If you die within the term, a lump sum is paid to your named beneficiaries. This is the most common and affordable type of life insurance, and the most suitable for mortgage protection or family income replacement.
Decreasing Term Insurance
A variation of term life insurance where the payout amount decreases over time — designed to align with a reducing mortgage balance. Premiums are lower than level term cover.
Whole of Life Insurance (Seguro de Vida Entera)
Covers you for your entire life, with a guaranteed payout whenever you die. Premiums are higher than term policies, typically used for inheritance planning or to cover funeral costs rather than mortgage protection.
How Much Does Life Insurance Cost in Spain?
Life insurance premiums are primarily determined by your age and the amount of cover required. As a rough guide:
| Age | €100,000 Cover | €200,000 Cover | €300,000 Cover |
|---|---|---|---|
| Under 40 | From €15/month | From €25/month | From €35/month |
| 40 – 50 | From €25/month | From €45/month | From €65/month |
| 51 – 60 | From €45/month | From €80/month | From €115/month |
| 60 – 65 | From €80/month | From €150/month | From €210/month |
Figures are indicative. Premiums vary by provider, health history, smoking status, term length and level of cover. Smokers typically pay 30–50% more.
Life Insurance in Spain — Frequently Asked Questions
Do I need a Spanish NIE to take out life insurance?
A NIE (Número de Identificación de Extranjero) is required by most Spanish insurers. If you’re in the process of obtaining your NIE, we can advise on timing and which products can be arranged in the interim.
My Spanish mortgage lender insists I use their life insurance — do I have to?
No. Spanish law gives you the right to arrange life insurance independently. You must meet the lender’s minimum coverage requirements, but you are not obliged to purchase the policy they offer. In most cases, we can arrange equivalent cover at a lower premium and provide documentation your lender will accept.
What happens if I have a pre-existing medical condition?
It depends on the condition. Some conditions are accepted at standard rates; others attract a loading (higher premium); others may be excluded from the policy. We will always be transparent about this before you commit to anything.
Is it too late to get life insurance if I’m over 60?
No — cover is available for expats in their 60s. Premiums are higher with age, and maximum cover amounts may be lower, but life insurance remains a practical and valuable product.
What currency is the payout in?
Spanish life insurance policies pay out in euros. If your beneficiaries are based in the UK, they will receive the payment in euros and convert to sterling.
Can I name a non-Spanish resident as a beneficiary?
Yes. You can name any person as a beneficiary, regardless of their nationality or country of residence. It’s important to keep your beneficiary designations up to date.
Protect What Matters Most
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