Expats in Spain

Moving to Spain temporarily or permanently is a decision that an expat thinks deeply and thoroughly before taking it. Many beloved ones will stay back in their home country and the expat will not see them as often, even though Internet and the low cost airlines will make him feel closer to home than some years ago. However, within the decision of moving to Spain one must consider the possibility of passing away on Spanish soil. No one wants this to happen, but it can happen. For this reason, one must evaluate what options the insurance Spanish market can offer you to fulfil this need. This type of insurance has been distributed in Spain for almost a century and works different than in the rest of Europe. In Spain it is distributed as an independent product and it acts as a service provider, managing the insurance company all the paperwork. With the Caser Expatriate Funeral Plan a one call service is provided in English 24 hours 365 days. This helpline service is the only call that the next of kin needs to make. Caser will then take over the arrangements and planning of all of the arrangements be it a funeral or repatriation.

What should I know?

Let’s list for example some of the key aspects that an expat should consider before contracting a funeral insurance product.

1. How much does funeral insurance cost?

It depends on the insurance company and the product. Caser offers a product to the expats of under 71 years old that includes repatriation of the body to the home country, a 24 hour helpline (legal and product orientation) and many other covers from a very competitive premium. You will find three guiding examples with their annual premium:

1. Man, 65 years old, English nationality: 140 euros / year.

2. Man, 55 years old, English nationality: 65 euros / year.

3. Man, 45 years old, English nationality: 35 euros / year.

Don’t forget that if an expat contracts an insurance policy, he will have access to funeral services at a much lower rate than if he contracted the services directly himself.

2. Is there a waiting or grace period?

No. For example, if an expat contracts a policy the 1st of January of 2011 and he passes away on March 2nd, 2011 the policy will have full coverage. This is a huge difference and advantage if we compare funeral insurance with other products distributed in Spain under the name of Funeral Plans where you must pay upfront between 3.000 to 8.000 euros in some cases. And if you pay under instalments you could end up paying up to 10.000 euros.

3. Can an expat be sure that the insurance company will cover 100% of the funeral costs?

Yes. The insurance companies increase yearly their premiums based on the cost of living in order to guarantee at all times 100% of the covers that were contracted by their clients.

In Spain, more than 50% of the population has funeral insurance. This fact must be taken into consideration by any expat due to two relevant aspects: experience and infrastructure. Over 100 years of experience back up the Spanish exclusive know-how on this matter and also have allowed the creation a solid infrastructure to service the market in Spain and abroad.

4. Could there be a case where the Insurance Company would not pay the funeral service contracted?

If the policyholder has knowledge of a health problem when the funeral policy is being contracted, he should inform his insurance intermediary so the insurance company can evaluate his case. If not, in case of death, if the insurance company, from the information obtained from the death certificate and its medical evaluation, determines that the policyholder’s health condition was not the one stated in the policy, could decide to decline the coverage. In these cases, the family would be informed about this decision and they would be offered the possibility to provide medical documentation that could prove that the policyholder had no knowledge of his health problem at the time of contracting the policy. If the information provided to the insurance company showed enough positive proof, the insurance company would pay out immediately all the funeral services costs as stated in the policy. Keeping an updated medical history, not just for this matter, it will always be a good idea.

5. Would the insurance company pay back any money to the relatives if the funeral costs were lower than what the insured had paid in life?

It depends on the insurance company. Caser pays back 25% of the net premiums as long as three years have gone by since the issue date of the policy, the policy is active, and all the receipts have been paid and no previous coverage has been made to the same policy.

You can get more information on funerals in Spain here, and you can get an accurate quotation of costs for your individual circumstances here.