20 Nov 2010 9:56 AM:

Dear Jarvi,

Did you know that some of these companies now offer to give you back your premiums - IF you pay off your mortgage as agreed over the 30 year term? (Of course, how many consumers actually do that...?)

Thread: Life Insurance for Spanish mortgages

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19 Nov 2010 2:37 PM:

I have found life insurance in Spain to be considerably more expensive than good life Insurance back in the UK.

I am not sure why this is; I just found that it was.

One of the key things that you need to consider when organizing Spanish Life Insurance cover is the Inheritance Tax you would have to pay should you die and what effect this could have on your familys ability to live.

I know that all this sounds a bit dramatic but consider that the Tax exemption for any spouse in Spain is very very low. In the UK your estate can be left tax free up to a value of 240,000, in Spain only the first 10,000 euros is actually tax free!

With Spanish Life Insurance and all life insurance in general the devil is in the detail and if you do practice any dangerous sports, even Skiing or Water Skiing then be sure to check that you are covered. Another favourite thing Insurance companies sometimes refuse to cover is horse riding!

Depending on the size or value of the life insurance in Spain you may need o have a full medical examination before any company will be prepared to insure you.

If you have a mortgage on any property in Spain they you may find that the mortgage company will insist on you taking out Life Insurance for the value of the mortgage.

Lastly many life insurance companies in Spain offer individual policies as well as family policies. You may find it far more economical to obtain family life insurance in Spain rather than an individual policy.

Regards...!

Thread: Life Insurance for Spanish mortgages

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19 Nov 2010 2:31 PM:

Dear Sir,

      I only wish people were far more familiar with such clauses. Currently all clients seem to be interested in is what the headline rate is. As such many see no reason to pay for professional advice when it comes to taking a mortgage in Spain. Agents involved often dont help. Here in Tenerife clients are usually dragged into the nearest bank and lumbered with any old product and told it is fantastic. Only now, during such tumultuous times are many of these clauses enacted by banks and the borrowers have little or no idea why they ares still paying 6% when rates are historically low.I am currently dealing with a few cases where a client wishes to remortgage/switch lender bu their current lender has added on upfront life insurance (to the tune of 20,000€ plus). The bank wont cancel the insurance and insists it has to be kept even if the client switches lender. Unfortunately since it is added to the loan upfront it will incur interest at prevailing rates for the full term of the mortgage more than doubling its actual cost....!!!

 I hope this link may be helpful for everyone: Cheap Caravan Insurance

 

This message was last edited by jcksn65 on 19/11/2010.
Thread: Life Insurance for Spanish mortgages

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