More than 20 million Spaniards are protected by life insurance, which means that 4 out of 10 people in Spain have one. The experts at elmejorsegurodevida.com have compiled this and seven other interesting facts about these products in Spain
Life insurance is responsible for ensuring the economy of a home. In case something happens, they act and pay compensation to the loved ones of those who hire them. They have a simple operation and are very common in Spanish society.
The experts at elmejorsegurodevida.com, the leading online life insurance comparator in Spain, have compiled eight pieces of information about these products to provide more information to those who are doubting whether or not they are worth it.
More than 20 million Spaniards have one
In 2020, there were about 20.7 million people with life insurance in Spain, according to data from Unespa, the sector’s employer’s association. Specifically, just over 15 million have an individual policy and another 5.6 million were within group insurance. Taking into account that, as of January 1, 2021, there were 47.3 million people in Spain, it is concluded that 4 out of 10 residents in Spain are protected by one of these products.
1 in 6 people who die in Spain has one
In Spain, between 65,000 and 70,000 people who had one of these life insurances die each year. That means that 1 in 6 people who die leaves compensation to their loved ones.
Every year 4,700 mortgages are paid off
Life insurance for the mortgage ensures that, in the event of the death of the owner, the compensation is used to pay the debt with the bank. Thus, each year they are responsible for paying off about 4,700 mortgages, so these families do not have to continue paying after losing one of their members.
In 2020 they paid more than 1,275 million euros to the Spanish
The hope of any person when taking one of these policies is never to need it. However, and as the figures in the previous point show, misfortunes do happen. In 2020, in which there were 17.7% more deaths than in a normal year, life insurance paid about 1,275 million euros in compensation. This data represents 6.25% more than the previous year.
In addition, the money that companies have paid to their policyholders has grown over the years. For example, only between 2015 and 2020 have they paid 16.9% more in compensation. The reason is that more and more Spaniards decide to protect themselves with these products.
42% of life insurance is temporary renewable
There are different types of life insurance. The most common are temporary and renewable. In general, these policies are contracted for a year and, if the client is happy, they are automatically renewed. They are the most recommended option because they allow you to easily modify the characteristics, without tying the client for years and years to the same company. If you don’t like it, you just have to change.
Thus, from elmejorsegurodevida.com they recommend avoiding the so-called single premium insurance. They are those in which many years are paid at once, for which they force to disburse thousands of euros at the moment. Not only are they more expensive, but they do not allow to modify their characteristics and they are very difficult to cancel. Fortunately, they are becoming less common, although they are still sold by some banks.
Most have an annual premium of less than 300 euros
Life insurance is not expensive. In fact, most have a premium of less than 300 euros a year. The premium is established according to several factors, but three are the most important: age, the capital to be hired and coverage.
Bank life insurance is up to 93% more expensive
Hiring one of these policies with a bank can be almost twice as expensive as if it is done with a specialized company. This was demonstrated by an independent study by INESE and Global Actuarial, with data from 2021, which compared the prices of several banks and insurers. A product that should cost 360 euros is now worth 694.03 euros, for example, despite having the same characteristics. Therefore, the best trick to save is to go to expert companies in the sector.
Only 3.9% of the insured died after paying more than 30 years
It pays to have life insurance. In 2019, only 3.9% of the insured died after paying 30 years. In fact, 3 out of 10 died less than 5 years after having it. You are unlikely to need one of these policies, as fortunately few people die prematurely. However, and when it is necessary, the most common is that it gives more money than was paid in premiums.
“These data are only a sample of what life insurance contributes to Spaniards. They are not expensive if you go to specialized companies and, if you need them, they can make a difference in the economic health of a home. Most importantly it is always to have all the information possible to make a good decision “, they say from elmejorsegurodevida.com.
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