Maybe life (or accident) insurance isn't high on your shopping list, but it is good financial planning if you live with someone or have children, or want to organise long-term projects for yourself. Accident insurance is cheaper but only provides financial compensation when there is death caused by accident (not illness). However, it also offers compensation if you lose part of your body in the accident (see below)...
Maybe your local bank in Spain is charging you more for the life insurance you had to take out when you got your mortgage. Term life insurance can be paid to repay the outstanding balance of your mortgage. Ask me for a free quote (no strings attached). What have you got to lose? If I'm cheaper, you are allowed to change your life insurance cover under Spanish law as long as the beneficiary is the bank (if you die)
When you obtained the mortgage, your bank manager normally took the opportunity to sell you mortgage-related life insurance. He probably also told you that you can change to another insurance company during the life of your mortgage.
In accordance with Spanish insurance legislation, you have to give 2 months' notice before the date of renovation. To prevent subsequent persuasive 'phone calls from the legal department of your bank, you should ensure that you use registered post (or a burofax) so that someone in the bank has acknowledged delivery before the 2 month period of notice.
If you decide to take life insurance with another insurance company, you simply indicate in the policy that the bank where you have your mortgage will recover the money it is owed - and any surplus compensation (if you die) will be paid to your estate (to be paid to those people you named in the policy and / or who will inherit).
All life insurance policies have to be notified by insurance companies to (currently) the Ministerio de Justicia. When someone dies you can complete a form and ask for details of life insurance policies in that person's name.
Perhaps your long-term plans are based on 2 incomes. What would happen if one of you died? Would your partner and/or children be financially protected? Life insurance can be used as a 'Plan B' - so that the surviving partner and / or children can maintain the same standard of living.
1. Accidental death / 2. Death due to a road-traffic accident / 3. Permanent total disability / 4. Permanent total disability due to an accident / 5. Permanent total disability due to a road-traffic accident / 6. Serious illnesses ( Heart attack / Coronary artery (by-pass) surgery / Cerebrovascular accident (stroke) / Cancer /
Either a specific funeral insurance plan or a life insurance plan can help with burial, medical and paperwork costs at a moment when the family least wants to worry about these questions. If the deceased person wanted to be buried in his / her country of origin, a funeral plan could be useful.
Life insurance or a savings plan with life insurance cover can provide the money needed for future plans, even if you die prematurely.