RENEWABLE ANNUAL LIFE INSURANCE

Renewable annual life insurance is a customisable product where you choose the cover.

Death from any cause.

• This guarantee is mandatory and you must subscribe to cover of at least €30,000.

Absolute and permanent disability.

• This is optional cover; if it is contracted, it is equal to the cover contracted for death.

Accidental death.

• This is also optional cover. If the policy is taken out, the additional capital will be the same as that of the death guarantee, with the following:
• Maximum limit: €310,000 in insurance policies that include a death capital of less than €250,000.
• Maximum limit: €750,000 in insurance policies that include a death capital of more than €250,000.

The insured must be an individual resident in Spain; non-residents may only contract death coverage if the insured is domiciled in Spain.

The insured must be between 14 and 69 years old at the time of contracting the insurance. In the renewable, periods, the maximum age is 70 years in the case of death insurance and 67 in the case of permanent absolute disability. In the case of accidental death, the cover will be extinguished in the annual period in which the insured turns 65 years old.

A health questionnaire consisting of ten questions must be completed to contract the insurance. In exceptional cases, the insured may need to complete certain additional questionnaires:

• Disease questionnaire: if the insured declares that they are suffering from certain diseases.
• Professional questionnaire: if the insured declares that they belong to one of the professional categories considered to be high risk.
• Accommodation/travel questionnaire: if the insured declares a large volume of trips.

The first instalment will be charged directly to the designated account. On renewal, these are charged through the bill.

This insurance does not include an instalment fee for spreading payment of the premium.

Payments for the Renewable Annual Term Insurance can be split when they exceed €18:

There are no tax deduction for the premiums paid.

On the death of the insured, the payments received by a person other than the policy holder will be subject to Inheritance and Donations Tax. The way in which these are taxed will depend on the degree of kinship and the current tax regime in each Autonomous Community.

The income obtained as a result of absolute and permanent disability insurance will be considered capital gains and subject to personal income tax. Withholdings will be applied to the amounts considered as income for income tax purposes. This is without prejudice to the regulations of the Basque Country and Navarra.

If the beneficiary is the spouse and it is understood that the insurance premiums were made from jointly-held funds, the beneficiary may pay tax on the difference between half of the capital received and half of the premiums paid in income tax, and the other half of the capital in Inheritance and Donations tax. This is this case providing that it is expressly stated in the application form. Otherwise, tax would be payable on the full amount.

Yes, you can have as many life insurance policies as you want. And all will be collected in the event of a claim.

Yes, you can name as many beneficiaries as you wish and change them at any time.

There is a public registry of life insurance that enables beneficiaries to identify all of the deceased's current life insurance policies.

The duration of the insurance contract is one year. It will be automatically extended unless indicated otherwise. The contract can be cancelled at any time once the first twelve months have passed, by giving one month's notice.

The policy excludes claims resulting from an illness or accident that were known to the insured before the insurance entered into force and that were not reported to the insurer on the health questionnaire included in the application for analysis and possible acceptance by the insurance company.

In accordance with Law 50/1980 of 8 October on Insurance Contracts, during the term of the contract the policyholder or the insured must notify the insurance company as soon as possible of any changes in the factors and circumstances declared in this insurance questionnaire that may aggravate the risk and are of such a nature that, if they had been known by the insurance company when executing the contract, the company would not have entered into it or would have issued it under far harsher terms and conditions.

However, in accordance with the same law, in the insurance of people the policyholder or the insured have no obligation to report any changes in the circumstances relating to the insured's state of health, which in no case will be considered an aggravation of the risk.

Yes, you can make changes according to the following capital limits:

• In insurance policies with an insured capital of less than €250,000 (death): You can make changes to the policy, with a minimum insured amount of €30,000 and a maximum insured amount of €249,999.99.
• In insurance policies with an insured capital of more than €250,000 (death): the minimum insured amount is €250,000. This amount cannot be reduced.

There are two possibilities. If it is the initial premium, the insurer can terminate the contract or pursue it through the courts. If it is a renewal or successive premium, the cover will only continue for one month after the premium maturity date. The insurer can claim the premium and, if it does not, the contract will be cancelled in 6 months.