How to take out Funeral Insurance in Spain?
Funeral insurance, also known as burial insurance, death insurance or even popularly as "insurance for the dead", is a type of cover that can be key at difficult times. Although many people prefer not to think about it, a good understanding of this insurance can help to avoid unforeseen events and hasty decisions.
What is a Death Insurance policy for?
When a loved one passes away, in addition to the emotional impact, there are a number of other tasks and expenses that can be a burden on the family. This type of insurance is designed to cover these costs and tasks, such as the funeral service, transfers, and even administrative procedures: death certificate, registration in the civil registry, burial or cremation licences, among others.
The main objective of this insurance is to facilitate all these processes for family members at a delicate time. There are different modalities and coverages, so it is important to know the options well in order to choose the one that best adapts to each case.
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What does funeral insurance cover in Spain?
Basic coverage usually includes:
- Ark and hearse
- Set-up of the service and preparation of the corpse
- Mortuary and mortuary chapel
- Burial or cremation
- Official certificates and burial licence
- Flower wreath and accompanying carriage
- Temporary grave or niche, gravestone and inscription
- Religious services, if requested
This set of services is covered by a capital sum insured, which varies according to the province of residence and the insurer. Some companies adjust the value annually to compensate for price increases such as CPI or VAT.
Types of premiums: level, natural, semi-natural or single premiums
One of the most important aspects to take into account when taking out funeral insurance is the type of premium. There are several types, each with its own characteristics:
Level Premium
It is a fixed fee that does not increase with age, it can only vary with the update of the cost of the service. It has a higher initial price, but offers stability over time.
Natural Premium
In this case, the premium increases each year according to the age of the insured. It is often the cheapest option initially, but over time it can far exceed the cost of a level premium.
Semi-Natural Premium
This is an intermediate option. Premiums are reviewed and revalued over periods of several years, such as five-year periods.
Single Premium
It is paid in a single payment. This is less common, but could be interesting in certain specific circumstances.
Additional guarantees: assistance and accident cover
In addition to the funeral service, many funeral insurance policies include other complementary coverage that can be useful:
- Travel assistanceBoth at home and abroad (transfer of the wounded, repatriation, dispatch of medicines, etc.).
- Death or disability due to accidentwhich provides additional capital in the event of a claim.
- Medical consultations or access to health service networks, in some policies.
These guarantees may increase the price, so it is worth checking whether they really meet your needs.
Difference between life insurance and death insurance
Although they are often confused, they are not the same:
- The death insurance focuses on arranging and paying for the funeral service and the arrangements after the death.
- The life insurance provides financial compensation to beneficiaries, but does not directly cover funeral expenses.
The two products may be complementary, but they have different functions.
How much does funeral insurance cost per month?
The monthly price may vary depending on several factors: the age of the insured, the insured capital, the province of residence, the type of premium and the coverage contracted.
What you should know before contracting
If you already have a death insurance policy and you are being offered another one, it is essential to compare the conditions carefully. Pay particular attention to the type of premium: if you switch from a level premium to a natural premium, you may pay less at the beginning, but more in the long run.
In addition, if you stop paying a level premium, you will lose the accumulated seniority, which may affect future conditions if you take out a new one.
Legal framework and policyholder guarantees
Death Insurance in Spain is regulated by specific regulations that protect the insured. For example, the Royal Decree 1298/2009 provides that, before the contract is signed, the policyholder must be given a clear information note on:
- The type of premium (natural, levelled, etc.)
- Calculation of the initial premium and its evolution
- Risk factors (age, capital, cost of services)
- Table of premiums up to the age of 90
- Clauses such as indisputability
- Conditions for termination of the contract
This regulatory framework ensures that consumers can make decisions with transparent and complete information.