What You Need to Know About Funeral Plans in Spain vs Life Insurance in Spain
The Spanish insurance market is swamped with a plethora of insurance products including expat prepaid funeral plans and life insurances. Companies such as Avalon Prepaid Funeral plans in Spain and Golden Leaves Funeral Plans offer a varied range of affordable funeral plans in Spain.
Funeral plans in Spain have for a long time been one of the top selling insurance policies in Spain. However, for many expats in Spain taking out any kind of insurance in Spain is confusing.
In this article we are going to take a look at funeral plans in Spain vs life insurance in Spain. Unfortunately, many British expats resident in Spain are confused between life insurance and funeral plans.
Funeral plans in Spain have for a long time been one of the top selling insurance policies in Spain. However, for many expats in Spain taking out any kind of insurance in Spain is confusing.
In this article we are going to take a look at funeral plans in Spain vs life insurance in Spain. Unfortunately, many British expats resident in Spain are confused between life insurance and funeral plans.
A Mini Guide to The Pros and Cons of Life Insurance vs Funeral Plans in Spain
The funeral plan and life insurance market in Spain is confusing for many. Many agents selling funerals plans in Spain and life insurance in Spain are poorly trained. For instance, an insurance adviser doesn't always explain the difference life insurance and funeral plans.
This what you need to know about funeral plans vs life insurance in a nutshell:
Life Insurance In Spain
- A payout from a life insurance can be used in many different ways.
- The value of the life insurance is often fixed and may not rise with inflation.
- If you would like to use the payout to cover the cost of expats funeral in Spain
- You will have to answer questions about your personal health, lifestyle and maybe even go through a medical.
- Life insurances often take some time to pay out.
- The value of your funeral plan only goes towards paying towards your funeral. It can't be used for other purposes such as paying off a mortgage.
- The plan is governed by a Funeral Director who often works for the company providing the plan.
- You agree all arrangements yourself together with the representative from the funeral plan company.
- A medical required and there is no need to answer questions about your health and lifestyle.
- Depending on the level of your plan, the agreed arrangements will be taken of by the funeral plan company. Your friends and family don't need to do anything unless they feel they would to do something extra.
The first thing you should ask yourself is how much funeral plans in Spain cost when compared to expat funerals in Spain. It could, in fact, be cheaper to make alternative arrangements directly with a local funeral provider or even a lawyer.
In many ways, a life insurance policy is more flexible as your surviving family, or a legal representative you nominate, can distribute the funds in the plan per instructions left in your Spanish will. But, no matter what happens, the issue of your remains needs to be handled. It does not matter if you would like to be scattered in the bunker at the 18th hole on your gold course in Spain or repatriated to your home country.
What About Funeral Plans In Spain?
Funeral plans vary in the way they pay out. Before you take out a funeral plan, it is essential to make sure that you find the right one which fits in with your personal circumstance. A funeral plan is meant to give you peace of mind – this is the ultimate reason for taking out a funeral plan in Spain.
There is now such a plethora of Spanish funeral plans that it is hard to find the one is right for you. Before you sign up for a funeral plan in Spain, you should check out all of the available companies and option. The same goes for life insurances in Spain.
Life Insurance Qualifying Periods
Some insurance companies in Spain and other countries around the world, stipulate qualifying periods. Although they may pay out the full amount straight away for accidental death, they may not pay out when you die from an illness less than two years after you took out the insurance.
As we live longer now, some life insurances don't pay out after a certain age. Make sure you check the terms an conditions of your Spanish life insurance before you sign on the dotted line. If you are not sure about something you should always ask the insurance company to clarify it in writing.
If you look at funeral plans vs life insurances in that way, taking out a funeral plan is often the best option. However, if you make monthly payments into your Spanish funeral plan, you may find you don't have enough funds available in the plan should you die before you have paid in enough money to cover funeral costs.
The best option is always to pay off a funeral plan in one go.
What Are The Alternatives?
One of the top alternatives is to save for your funeral. The downside of saving for your funeral with this is that costs go up all of the time. You may even find it hard to save enough money. Even when you pay in Euros 20 per month, it will take a long time to reach an amount which could potentially pay for a funeral service and other costs associated with an expat funeral in Spain.
When you are considering investing in a funeral plan or buying life insurance, don't be afraid to ask questions. Avoid falling gimmicks such as TV personalities recommending a plan or a gift vouchers.
Comparing notes on life insurances in Spain vs funeral plans in Spain is not easy. Make sure you don't get pushed into anything by a sales person, friend or family member. Choosing the right kind of funeral plan in Spain, or life insurance in Spain, is just as important as if you were in the UK.
