Who should be my life insurance beneficiary?

A tough question that is difficult to decide! When taking out life insurance, it is important you have an answer prepared. In this article, we will discuss beneficiaries and the factors which may come into play when you are deciding who to choose. Let’s get right into it!

Who should be my life insurance beneficiary?

If you are a parent, sibling or spouse, choosing who should be your beneficiary can be a hard a decision. Each person brings a new set of questions to ponder. If you are a single parent and your children are young, you may be thinking of choosing a parent or sibling that is going to raise your kids. If you are married, you may be trying to decide between your partner, children and the rest of your family.

We advise our clients to use this logic – who would be most financially impacted by my passing? A hard decision to make if you have a shared mortgage or several people who are involved in the upbringing of your children.

First of all, what exactly is a beneficiary?

A beneficiary is an individual who will receive the payment from your life insurance premium in the event of your death. This payment can be used to pay for funeral expenses, mortgages, loans and other bills that may arise. The payment is also commonly used to finance the upbringing of your children or for the care for your elderly parents.

Can I have more than one beneficiary on my life insurance?

Yes, you can name more than one person as your beneficiaries by splitting the percentage each person will receive. A contingent beneficiary can also be named, so if the primary beneficiary died, the named contingent would receive the death benefit.

Are there any strict inheritance laws in Spain which may influence who I can pick as my beneficiary?

Yes, Spain does have strict inheritance laws. You are not allowed leave all of your estate to your spouse if you have children. This is a complicated area of Spanish law, so we recommend you get in touch with us to answer any questions that you may have.

Who should I name as my beneficiary?

Who you pick as your beneficiary really comes down to your personal circumstances. If you live with a partner and have a mortgage, would they be able to pay it without your contributions? Will Spanish inheritance laws be a factor for you if you have children? Or if you provide care for your parents, would they be able to cope with their finances without you?

Deciding who you should name as your beneficiary is a very important decision when taking out life insurance. It is also the main point of taking out this type of protection. Therefore, it is crucial you give the insurance company the correct information about the beneficiary. You can update this information when needed to ensure accuracy.

5 important things to remember when taking out Spanish Life Insurance:

  1. Keep your policy up to date: When a major event happens in your life, you will need to update your policy. If you remarry or get divorced, you may need to change your beneficiary. Adding your grandchildren or your children’s spouse is also a common reason to update your life insurance policy.
  2. Name at least two beneficiaries: If you and your sole beneficiary were to pass away at the same time or before you get the chance to update your policy – then you have no named beneficiary. With no designated beneficiary, everything will be subject to probate.
  3. Naming your estate as your beneficiary may not be the best idea: If everything goes to your estate, they will most likely be subject to probate. This can add extra stress for your loved ones as they will have to wait and see what the court decides for their inheritance.
  4. Leave clear instructions for how you want your estate divided: If you don’t, your estate could get divided according to probate or go to an irresponsible beneficiary.
  5. Change your policy when your child is no longer a minor: Wanting to protect your children financially is a major reason why people opt to take out life insurance. Many people name a trusted relative or a spouse as a trustee to handle the money until their children reach an age where they can be trusted with a large sum of money. It is important to remember to remove the trustee from your policy when your child is no longer a minor. 

Life Insurance in Spain

Life insurance in Spain is not compulsory, but it is one of the most popular forms of insurance that is taken out as it gives you peace of mind, knowing that your family will be protected in the event of your death. In that eventuality, your family members will be paid out a lump sum or regular payments – whichever you choose.

4 advantages of Life Insurance in Spain for expats

  1. Security for you and your loved ones, relax knowing your family will be looked after financially after your passing. 
  2. A comprehensive package, so your plan can be specific to your needs.
  3. With our Life Insurance packages, the following instances are covered:
    • Accidents, including those resulting from transport or travel
    • Disability protection
    • Damage due to pollution
    • Serious illness protection
    • Death
  1. You also have the option of adding extra protections:
    • Additional protection in the case of death by accident.
    • Additional protection in the case of death by traffic accident.
    • Additional protection in the case of total/permanent disability by accident.
    • Additional protection in the case of total/permanent disability by traffic accident.

Over to you...

HomeFinance Spain have got you covered for no matter what insurance you need. We provide services for wills and inheritance matters too!

For more see – Life Insurance in Spain for Frequently Asked Questions and details on policies. 

Apply for Life Insurance with HomeFinance Spain

Our team of insurance specialists have you covered for life, home, health, pet and motor insurance in Spain. Get in contact with us to find out more information. 

Get in touch today by calling (0034) 96 682 11 72 or by filling in the contact form provided.


Get in touch

By submitting this form, you confirm that you agree to our website terms of use, to our privacy policy and consent to cookies being stored on your computer.


Get in touch

By submitting this form, you confirm that you agree to our website terms of use, to our privacy policy and consent to cookies being stored on your computer.

We're Moving!

HomeFinanceSpain will now be focusing purely on insurance services and as a result, we are sunsetting the HomeFinanceSpain website.

We have rebranded to:

Visit our new website at: www.kynainsurance.com

If you have any questions you can still contact us at [email protected] or call us on (+34) 96 682 11 72