Life Insurance in Spain for Expats (2026): The Complete Guide
If you're moving to Spain or already living here, life insurance can be one of the smartest 'boring' decisions you make—especially if you have a mortgage, a partner, children, or anyone who depends on your income.
Quick Answer: What Life Insurance Do Most Expats Buy?
Most expats in Spain buy term life insurance ('vida riesgo'). It's affordable, easy to match to a mortgage or family protection, simpler to compare, and flexible.
- Term/risk life insurance is the most common choice
- Covers mortgages and income gaps at low cost
- Whole life exists but is less common for expats
- Banks often push insurance with mortgages (not always required)
- Pre-existing conditions don't always mean decline
Do You Need Life Insurance in Spain as an Expat?
You don't have to buy life insurance just because you live in Spain. But you likely should if any of these apply:
You Should Seriously Consider It If:
- You're buying a property with a mortgage
- Your partner depends on your income
- You have children or dependents
- You have shared debts (loans, business obligations)
- You want to avoid financial stress for family if something happens
You May Not Need It If:
- —You have no dependents and no debt
- —You have enough assets/savings to cover major obligations
- —Your goal is only funeral costs (funeral insurance may fit better)
Is Life Insurance Required for a Mortgage in Spain?
Banks in Spain often push life insurance during the mortgage process. Sometimes it's tied to:
Rate discounts
("bonificaciones")
Product bundles
(life + home + cards)
Underwriting conditions
(loan approval terms)
Important reality: A bank may want the loan protected, but that doesn't always mean you must buy their life insurance. In many cases, you can use an external insurer if it meets the bank's minimum requirements.
If you're buying property, read our detailed guide: Mortgage Life Insurance in Spain (2026).
How Much Does Life Insurance Cost in Spain (2026)?
Life insurance cost in Spain depends on:
Realistic Monthly Price Ranges (2026)
For standard-risk profiles (non-smoker, no major health issues):
Death-Only Term Life (Vida Riesgo)
| Age Range | Monthly Cost |
|---|---|
| 25–34 | ~€3–€7/month |
| 35–44 | ~€4–€12/month |
| 45–54 | ~€10–€25/month |
| 55–64 | ~€20–€60+/month |
Death + Permanent Disability
| Age Range | Monthly Cost |
|---|---|
| 25–34 | ~€5–€12/month |
| 35–44 | ~€7–€20/month |
| 45–54 | ~€18–€45/month |
| 55–64 | ~€35–€90+/month |
These are ranges—your exact price depends on underwriting and insurer appetite. For detailed pricing: Life Insurance Cost in Spain (2026).
What Type of Life Insurance Is Best in Spain?
For most expats, the best default is:
Why Term Life Fits Expats Well
- Matches the years when your family needs protection most
- Covers mortgages and income gaps
- Gives high coverage at low cost
- Easy to cancel or reduce later
When Whole Life May Make Sense
- •Lifetime coverage for estate planning
- •A guaranteed inheritance amount for heirs
- •Long-term structured planning (and you accept higher premiums)
If you're comparing, see: Term vs Whole Life in Spain (2026).
What Does Life Insurance in Spain Cover?
Most expat policies are straightforward:
Standard Coverage
Death benefit: Pays a lump sum to beneficiaries if you die during the policy term.
Common Optional Additions
- Permanent disability: Pays if you become permanently unable to work
- Accidental death: May increase payout if death is accidental
- Serious illness: Less common, insurer-dependent
Key insight: Two policies with the same price can be wildly different if their disability definition or exclusions differ. Always compare the fine print.
How Much Life Insurance Do You Need in Spain?
There's no "perfect" number, but these formulas are reliable:
Mortgage Protection (Most Common)
Coverage = Outstanding mortgage balance + 6–12 months expenses
Example:
- • Mortgage balance: €220,000
- • 12 months expenses: €30,000
- • Coverage target: €250,000
Family Income Protection
Coverage = (Annual net income × 3–7) + Debts − Savings
Example:
- • Net income: €40,000 × 5 = €200,000
- • Debts: +€15,000
- • Savings to protect: −€20,000
- • Coverage: €195,000
Minimal Safety Net
Coverage = Debts + 12–24 months expenses
Good for expats with fewer long-term obligations who still want meaningful protection.
Expats: Can I Use Life Insurance from My Home Country?
Sometimes yes—but it depends on what you're trying to achieve.
If Your Goal Is Mortgage Approval
Spanish banks usually prefer:
- • Clear Spanish documentation
- • Beneficiary/payout structure compatible with the mortgage
- • Easy verification and claim process inside Spain
That's why many expats choose a Spanish policy for mortgage-linked needs.
If Your Goal Is Family Protection
A home-country policy can work if:
- • Beneficiaries are correctly listed
- • Payout logistics are clear across borders
- • The policy remains valid if you become non-resident
- • Currency and tax considerations are understood
Many expats do both: A Spanish policy for the mortgage, and a separate policy for broader family/estate needs. The key is to avoid accidental double coverage.
Life Insurance for Expats Over 50 in Spain
After 50, the biggest changes are:
If you're 50+, read: Life Insurance for Over 50s in Spain (2026).
Life Insurance with Pre-Existing Conditions (Expat Reality)
You can often still get insured. The typical outcomes are:
Standard approval
Approval with exclusions
Approval with higher premium
Decline
What matters most is stability of your condition, time since diagnosis or major event, medication consistency, and requested coverage amount.
Read: Life Insurance with Pre-Existing Conditions for Expats (2026).
How to Get the Best Life Insurance Deal in Spain (Expat Checklist)
1Define the purpose first
Mortgage protection? Family protection? Estate planning? Different purpose = different structure.
2Choose coverage amount realistically
Overshooting the number can trigger stricter underwriting and higher premiums.
3Decide death-only vs death + disability
Disability can be valuable—but it's one of the biggest cost multipliers.
4Compare "like for like"
Same capital insured, same coverage structure, same premium type, same key exclusions.
5Apply early if you're in a mortgage process
If you wait until the signing, you lose flexibility. Apply weeks earlier.
6Don't hide medical history
Incorrect disclosure can create claim issues later. The goal is approval you can trust.
Common Mistakes Expats Make (and How to Avoid Them)
❌ Taking the bank insurance without checking total cost over time
❌ Buying too little coverage to "save money" (false security)
❌ Buying too much coverage then cancelling because it's unaffordable
❌ Not understanding whether premiums rise each year
❌ Not checking exclusions, especially with disability and pre-existing conditions
❌ Leaving beneficiaries unclear (especially in international families)
Expert Insight: What We See Most Often
Maya Kallio
Licensed Insurance Agent, DGSFP
"The biggest issue I see with expat life insurance isn't the policy itself—it's the timing. People wait until they're signing the mortgage, then accept whatever the bank offers because they're under pressure. If you apply 4–6 weeks before closing, you have leverage: you can compare, negotiate, and choose the structure that actually fits your family—not just the bank's cross-selling target."
Maya has helped over 500 expat families structure life insurance in Spain since 2018.
Quick Decision Framework: What Type Do You Need?
Answer these questions to identify the right structure:
Do you have a mortgage in Spain?
Yes → You need coverage at least equal to the outstanding balance. Term life with decreasing coverage is the most cost-effective option.
No → Skip to question 2.
Does anyone depend on your income?
Yes (partner/children) → Calculate 5–10× annual income. Level term life gives predictable protection.
No → You may not need life insurance—consider funeral insurance or savings instead.
Do you want protection while you're alive (disability)?
Yes → Add permanent disability cover. This typically adds 40–80% to the premium but covers you if you can't work.
No → Death-only coverage is cheaper and simpler.
Are you over 50 or have significant health history?
Yes → Start the process early. Medical underwriting takes longer, and some insurers are more flexible than others.
No → Standard underwriting should be straightforward with competitive pricing.
Do you need lifetime coverage (estate planning)?
Yes → Consider whole life insurance. Higher premiums but guaranteed payout whenever you die.
No → Term life is almost always the better value for temporary needs.
Result: Most expats end up with term life insurance covering their mortgage balance plus 1–2 years of expenses, with or without disability depending on budget and risk tolerance.
Bank Life Insurance vs Independent: Quick Comparison
| Factor | Bank Insurance | Independent Insurer |
|---|---|---|
| Price over 20 years | Often 30–50% higher | Usually cheaper |
| Convenience | One-stop with mortgage | Separate application |
| Rate discount linked | Yes (0.1–0.3% off rate) | No |
| Flexibility to cancel | May lose rate discount | Full flexibility |
| Underwriting speed | Tied to mortgage timeline | Independent timeline |
| Coverage options | Limited to bank products | Full market comparison |
Bottom line: Calculate the total cost over the mortgage term. A 0.2% rate discount might save €2,000–€4,000 over 25 years, but the bank insurance might cost €3,000–€6,000 more in premiums. Do the math for your specific case.
Next Step: Get the Right Policy Structure
Tell us:
- Your goal (mortgage / family protection / both)
- Your age range
- Your target coverage amount (or mortgage balance)
- Whether you want disability included
- Whether you have any major pre-existing conditions (high level)
…and we'll recommend the cleanest structure and what price bracket is realistic for your profile—before you start collecting quotes.
Expert reviewed
Written and reviewed by licensed insurance agents Maya Kallio and Marco Elsinger, who have helped over 15,000 expats in Spain since 2012.
Maya Kallio
Licensed Insurance Agent
Since 2012
Marco Elsinger
Licensed Insurance Agent
10+ years
Languages: English, Finnish, Spanish, German, Swedish
Frequently asked questions
Still have questions? Check these answers or get in touch.
Is life insurance expensive in Spain?
Often not for healthy adults under 45. Costs rise with age, higher coverage, smoking, and disability add-ons. Term life is typically affordable—€5–€15/month for many profiles.
Can I get life insurance without being fluent in Spanish?
Yes, but choose a setup where you fully understand the policy terms and the claims process. Many brokers offer English-language support and documentation.
What's the best life insurance for expats with a mortgage?
Usually term/risk life with coverage aligned to the outstanding mortgage balance. Add a buffer (6–12 months expenses) if your household needs it.
Can I cancel the bank's life insurance later?
Sometimes—but it may affect mortgage discounts ('bonificaciones'). Ask the bank specifically what happens to your interest rate if you cancel or switch insurers.
Is life insurance the same as funeral insurance in Spain?
No. Funeral insurance covers funeral services and logistics; life insurance pays a lump sum to beneficiaries for income replacement and financial security.
How long does it take to get life insurance approved in Spain?
For straightforward cases (under 50, healthy, moderate coverage), approval can take 1–3 days. Complex cases with medical history or high coverage may take 1–3 weeks including medical exams.
Do I need a Spanish NIE to get life insurance?
Not always—some insurers accept passport-only applications, especially for non-residents buying property. However, having an NIE simplifies the process and paperwork.
What happens to my life insurance if I leave Spain?
It depends on the policy. Some remain valid worldwide, others are tied to Spanish residency. Check the 'territorial scope' clause before buying if you might relocate.
Can my beneficiaries outside Spain receive the payout?
Yes, in most cases. International beneficiaries are generally allowed, though the claims process may require translated documents and apostilles. Confirm this with your insurer upfront.
Is medical underwriting required for life insurance in Spain?
For smaller amounts (typically under €100,000–€150,000) and younger applicants, a health questionnaire may suffice. Higher amounts or older ages often require blood tests or medical exams.
Can I insure both myself and my partner on one policy?
Some insurers offer joint life policies, but individual policies often provide better value and flexibility. If one partner has health issues, separate policies prevent complications for the healthy partner.
What's the difference between level and decreasing coverage?
Level coverage stays the same throughout the term. Decreasing coverage reduces over time (matching a mortgage balance). Decreasing is cheaper but only suitable for debt protection, not income replacement.
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