Life Insurance Evaluations

Life insurance sold by Spanish Banks.

Here’s what you need to know.

It’s excessively expensive

As much as 6 times the price you’d pay in the UK.

Used as leverage for borrowing

Often used as a bargaining chip to allow more borrowing or to secure supposedly better interest rates.

Single premium life insurances added to mortgages

Notably by banks like Sabadell.

Annually renewable contract
- Premiums increase every year as you age, even for repayment mortgages.
- Unlike in the UK, ill-health, hazardous jobs, or hobbies must be disclosed—even hobbies that are not traditionally considered hazardous.

A Message From Mike Begg, Beat The Banks

In the following video, Mike Begg, founder of Beat The Banks Spain, discusses Life insurance mis-sold by Spanish banks and what you need to know.

Understanding Life Insurance Evaluations with Mike

In these videos, Mike expands on the topic of life insurance.

Underinsurance issues

Banks often insure less than the full mortgage term or amount to avoid physical medicals or health assessments.

Policy linked to mortgage

Your mortgage account number is tied to the policy. Payouts on death go directly to repay outstanding loans, often leaving surviving partners unable to cover future payments.

Extensive exclusions
- Example: Blanket exclusions for current or prior mental health conditions.
- Policies often limited to Spanish residents or tax residents, creating major complications post-Brexit