A very common practice among the Spaniards, derived from a culture that dates back decades, is the possession of a death insurance. This type of insurance covers most of the costs of funeral services in exchange for the payment of a certain sum of money so that, on the day of death, this insurance covers the costs of moving a body and its burial or cremation.
One study estimates it almost half of the population (47%) has taken out death insurance, being the fourth most contracted behind cars, healthcare and home. However, as pointed out by the Consumer and User Organization, this common practice involves the holders of such insurance they end up paying more than double or triple how much the funeral service costs.
According to the OCU study, conducted with 50 death insurers, only four of these policies end up paying an amount similar to what would be charged for a simple burial. Furthermore, three of them are single premium, in which a single high payment is required and then the capital is updated every year.
However, the survey FATHER reflects that a 72% of the deceased had this type of insurance and that, in general, most of the families were satisfied with the service provided.
So what to do with death insurance?
Given this situation, the question arises of what to do with the insurance you have taken out. If the possessor has had it for a long time and has a short life expectancy, it is recommended keep it because most of the premium will have already been paid.
In the case of being the holder of this type of periodic premium insurance for a short periodor, the recommendation they make from the OCU is to seek a cheapest company (without making the change until you get the confirmation of the new one).
One of the recommendations for those who are concerned that their family or heirs will have to bear the costs of a burial is reserve money in the bank intended for this purpose; just as another alternative is to assume a life insurance.
However, it is advisable to consult an expert in the sector to advise you on the different options that exist and who have no specific interests in contracting this type of insurance. What is very important is that the policyholder of a death insurance please keep family or close friends informed that you have this policyas these insurances are not included in any register, as in the case of life or accident insurance, because it may be the case that they do not know them and have no way of knowing them since it is not reflected anywhere.
