RENEWABLE ANNUAL TEMPORARY INSURANCE

General terms and conditions

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.

Economic terms and conditions

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:

Taxation

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.