Life Insurance in Spain for Expats (2026 Guide) | Costs, Coverage & How It Works
Life insurance in Spain works differently from the systems used in the US, UK, Canada or Latin America. Whether you are an expat, non-resident, homeowner, parent or simply planning ahead, choosing the right life insurance policy can protect your family, secure your mortgage and provide peace of mind in your new life in Spain.
If you are already looking for coverage options rather than just information, you can explore our Expat Life Insurance Spain plans, designed specifically for foreign residents and non-residents.
This complete 2026 guide explains the types of life insurance available in Spain, how coverage works for expats, the documents you need, cost examples, tax considerations, and how to compare the best policies for your situation.
Life insurance is only one part of protecting your life in Spain. For a full overview of health, home, car, life and visa-related insurance, see our complete Expat Insurance Guide.
Table of Contents
- What Is Life Insurance in Spain?
- Why Expats Choose Life Insurance
- Types of Life Insurance in Spain
- Life Insurance Requirements for Expats
- How Life Insurance Works in Spain
- Coverage Options & Add-Ons
- How Much Does Life Insurance Cost in Spain?
- Life Insurance for Families, Homeowners, Remote Workers & Seniors
- Required Documents (Spain 2026)
- How to Apply (Step-by-Step)
- Tax Implications in Spain
- Best Practices When Choosing a Policy
- Compare Life Insurance With UEI
- Related Guides
- FAQ — Life Insurance in Spain
What Is Life Insurance in Spain?
Life insurance in Spain (seguro de vida) provides financial protection to your beneficiaries in the event of death or permanent disability. It is commonly used for:
- Mortgage protection
- Family income protection
- Expat estate planning
- Debt or business protection
- Long-term financial security for dependents
Spain offers several life insurance formats, making it flexible for long-term residents, new arrivals, remote workers, couples and retirees.
Expats benefit from:
- Lower premiums than many EU/US markets
- Flexible contract structures
- Optional serious illness riders
- Policies available to residents and non-residents
Why Expats Choose Life Insurance in Spain
Life insurance is not a visa requirement in Spain, but many expats choose it to protect:
Family income
A tax-efficient lump sum for beneficiaries.
Mortgages and property
Banks often request mortgage-linked life insurance.
Relocation stability
Financial protection during the transition to life abroad.
International estate planning
Especially important for mixed-nationality families.
Business or freelance activity
Protects partners and dependents in case of death or disability.
For many expats, life insurance is not only a financial decision but part of broader planning when relocating or settling long term in Spain. If you’re still organising your move or legal status, it can help to review the main residency steps alongside insurance decisions in our Moving to Spain Checklist.
Types of Life Insurance in Spain
Spain separates life insurance into three main categories:
1. Term Life Insurance (Seguro de Vida Riesgo)
The most common option for expats.
- Coverage for a fixed period
- Affordable premiums
- High coverage limits
Best for: families, mortgage holders, long-term residents, newcomers.
2. Whole Life Insurance (Vida Entera)
Permanent coverage with a long-term savings component.
Best for: estate planning, high-net-worth individuals, long-term financial goals.
3. Mortgage Life Insurance (Seguro de Vida Hipotecario)
Often required or strongly recommended by Spanish banks.
- Covers outstanding mortgage balance
- Usually more expensive when sold directly by banks
UEI compares bank-linked policies with independent insurers — often 30–50% cheaper.
Life Insurance Requirements for Expats in Spain
Life insurance is not required for visas, but expats often need it for:
- Mortgage approval
- Protecting dependents abroad
- International estate planning
- Freelance or business risk protection
How Life Insurance Works in Spain
Life insurance policies in Spain include:
- Insured person – the individual covered
- Policyholder – the person paying the premium
- Beneficiaries – family members or designated persons
- Coverage amount – commonly €50,000–€500,000 (higher available)
- Payment method – monthly or annual
- Optional riders – disability, critical illness, accident cover
All insurers operating legally in Spain are authorised and supervised by the Spanish insurance regulator, the DGSFP.
Coverage Options & Add-Ons
Life insurance in Spain can include:
- Death coverage (standard) – lump sum to beneficiaries
- Permanent disability – inability to work
- Critical illness – cancer, stroke, heart attack
- Accident coverage – additional payout
- Funeral and repatriation services (optional, depending on insurer and policy structure)
For expats who want logistics handled (not only a payout), see Funeral Insurance in Spain for Expats and Repatriation Insurance for Expats.
How Much Does Life Insurance Cost in Spain?
Life insurance in Spain is generally cheaper than in the US, UK or Canada.
Estimated monthly premiums (2026):
- 35 years old – €100,000 → €6–€12
- 45 years old – €100,000 → €12–€20
- 55 years old – €100,000 → €20–€40
Pricing depends on age, coverage amount, health profile, smoking status and selected riders.
Life Insurance for Expats: Who Needs What?
- Families & dependents – income protection
- Homeowners – mortgage-linked policies
- Remote workers & digital nomads – cross-border protection
- Freelancers & business owners – partner and family security
- Seniors (60–75) – limited but possible with selected insurers
Required Documents in Spain
Typically required:
- Passport or NIE
- Health questionnaire
- Spanish or EU bank account (SEPA)
- Address (resident or non-resident)
Medical exams are only required for higher coverage amounts.
How to Apply (Step-by-Step)
- Tell us your situation
- Compare suitable insurers
- Choose your policy
- Activate coverage
Tax Implications in Spain
- Life insurance payouts are generally tax-free
- Subject to inheritance tax (regional rules apply)
- Autónomos may deduct premiums in certain cases
Best Practices When Choosing a Policy
- Match coverage to income or mortgage
- Avoid overpriced bank policies
- Update beneficiaries regularly
- Compare before signing
Compare Life Insurance for Expats With UEI
UEI is an independent broker:
- We compare authorised insurers
- Explain everything clearly
- No pressure, no upselling
You can also review our dedicated Expat Life Insurance Spain options before requesting a personalised comparison.
Related Insurance Guides
Related Insurance Products
FAQ — Life Insurance in Spain
Is life insurance mandatory in Spain?
No, except for some mortgages.
Can expats get life insurance easily?
Yes, most insurers accept expats.
Can non-residents apply?
Yes, with selected insurers.
Is life insurance cheaper in Spain?
Generally yes.
Can beneficiaries live abroad?
Yes, international beneficiaries are allowed.
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