What does life insurance cover?
Complete cover guide
Cover, sum insured options, taxation and what to ask before you sign. An honest guide written by people who have been advising on insurance for 50 years.
What it is and what it's for
Life insurance protects the people who depend on you financially. Beyond death, it can include disability cover and additional benefits that keep your family financially stable.
A well-structured life insurance policy is more than a formality tied to your mortgage. It's a financial planning tool that protects your loved ones in the hardest moments.
What life insurance
can cover
Death from any cause
The main cover. The sum insured is paid to the named beneficiaries in the event of death while the contract is in force.
Total permanent disability
Payment of the sum insured if the insured is permanently unable to work in any occupation. Conditions and age limits should be checked.
Disability for your usual occupation
Covers when the insured cannot perform their specific occupation, even if they could do another job. Especially relevant for the self-employed.
Accidental death
Additional cover for death resulting from an accident. Some policies distinguish between general and road accidents with different sums insured.
Terminal illness advance
Lets you advance part or all of the sum insured if a terminal illness is diagnosed, to meet medical costs and reorganise your finances.
Complementary cover
Double benefit for accidents, triple for road accidents, critical illness, funeral expenses and others depending on the plan.
What does life insurance not cover?
The most common exclusions in life insurance policies are:
- Suicide in the first year: most policies exclude suicide during the first 12 months the policy is in force.
- Undisclosed pre-existing conditions: if you omit relevant information on the health questionnaire, the insurer may reject the claim.
- Undeclared high-risk sports: skydiving, mountaineering and similar activities must be declared at the time of contracting.
- Criminal acts by the insured: death caused by the insured's own unlawful acts.
- War or nuclear disaster: standard exclusion in all policies on the Spanish market.
Three ways to structure
your protection
The option should match your goal: protecting your family, covering the mortgage or planning for the long term.
Constant sum insured
The sum insured stays the same throughout the term. Ideal for protecting your family with a fixed amount regardless of the mortgage.
Decreasing sum insured
The sum insured decreases as the loan is paid off. The most efficient way to cover a mortgage.
Index-linked sum insured
It rises each year in line with inflation. It protects the purchasing power of the sum insured over the long term.
Taxation of life insurance
In the event of death
The sum insured is taxed under Inheritance and Gift Tax, not income tax. It varies by region, degree of kinship and the amount of the sum insured.
In the event of disability
If the insured receives the payout during their lifetime (covered permanent disability), it is taxed under income tax (IRPF). Conditions vary depending on whether the policyholder and the beneficiary are the same person.
Taxation is one of the aspects worth reviewing with an adviser. Spain's regions have very different tax reliefs.
A realistic estimate, right now
How much would it cost to protect your loved ones?
Real rates as of June 2026. No personal details, no obligation.
Your premium with Segurmar
—/year
That's —/month
This combination of age and sum insured is not available as a rate. Contact us and we'll calculate it for you.
Ask on WhatsAppWith — per year you could insure approximately
—
you protect your family — that's —/month
Indicative figure based on our usual rates. The exact sum insured depends on the health questionnaire and the insurer.
The nearest guaranteed band is — for —/year
Talk to an adviserThis is the highest sum insured in the calculator. Do you need more than —? Contact us and we'll look into it with no obligation.
Message us on WhatsAppLooking for a different sum insured? Contact us for a personalised quote.
With that premium we can't yet reach 50.000 €. Contact us and we'll find the best option.
Message us on WhatsApp*The premium may vary when the personalised quote is prepared due to various factors affecting the pricing. Contact us for more information.
Lost in the jargon?
Yes. Death from illness or natural causes is covered when it forms part of the main benefit, provided the policy is in force and the conditions have been met.
No. The law lets you freely choose the insurer, as long as it meets the loan requirements. We find you a better option than the bank.
There is no standard figure. It depends on your income, dependants, outstanding debts and available savings. We help you work it out based on your real situation.
In most policies, suicide is not covered during the first year from the start date. After that period, it may be covered under certain conditions.
Pre-existing conditions must be declared correctly in the health questionnaire. If the information is truthful, the company will assess the risk before issuing the policy. If something was left out by mistake, you do not automatically lose your cover. And five years after the end of cancer treatment with no relapse, the law forbids taking that history into account.
Yes. In most policies, the policyholder can change the designation at any time, except in the case of an irrevocable assignment. It is advisable to review it after changes in your family situation.
In the event of death, the sum insured is taxed under Inheritance and Gift Tax, not income tax. For disability paid during your lifetime, it is taxed under income tax (IRPF). It varies by region.
It depends on the policy and the timing. Most policies exclude suicide during the first year the policy is in force. From the second year onwards, many policies do cover it. It is essential to read the general conditions of each insurer.
Standard life insurance covers death from any cause, including illness. If you want specific cover for a critical illness diagnosis (cancer, heart attack, stroke), there is critical illness cover that can be added or taken out separately.
Term life insurance (seguro de vida riesgo) only pays out if the insured dies or becomes disabled during the policy term. If you reach the end of the term alive, you receive nothing. Whole life or savings-linked insurance includes an investment or savings component that can be withdrawn at maturity or in certain circumstances.
Is your life insurance tied to the bank?
We can find the same cover for less. We analyse your current policy for free, no obligation.