Risk life insurance explained: cover, exclusions and prices 2026

Term life insurance is one of the most widely purchased products in Spain and, at the same time, one of the least understood. Most people know that it “pays if something happens to me”, but few have read their policy carefully.

This article explains what it is, how it works and—just as importantly—what it does not cover, so that your decision is informed rather than a leap into the unknown.

Term life insurance is a contract under which you pay a regular premium and, if you die or suffer a qualifying disability, the agreed sum is paid to your beneficiaries.

• Death from any cause: The foundation of every policy. It protects your family in the event of illness, accident or natural causes. The sum insured should cover between three and five years of your salary.

• Absolute permanent disability: Protects you if you can no longer earn an income. It is vital for self-employed people and the main earners in a household.

• Critical illnesses: Pays the sum early after diagnoses such as cancer, a heart attack or a stroke, helping you deal with medical expenses and reduced working hours.

• Extra benefits: Double cover after an accident, an international medical second opinion and help with the paperwork following a death.

Term life insurance does not cover absolutely everything. These are the exclusions you need to know:

1. Suicide during the first year of the policy.

2. Gross negligence, such as driving under the influence of alcohol or drugs.

3. Undeclared high-risk activities, such as skydiving, mountaineering or motor sports.

4. Undeclared high-risk occupations.

5. Pre-existing illnesses that were not disclosed in the health questionnaire.

For a €150,000 sum insured (death + disability):

• Ages 25–30: approximately €75–€130 per year.

• Ages 31–40: approximately €120–€220 per year.

• Ages 41–50: approximately €210–€380 per year.

• Ages 51–60: approximately €400–€700 per year.

Note: The price can double or triple if you smoke. Answering the health questionnaire honestly is your only real safeguard for a future claim payment.

It makes sense if you have minor children, an active mortgage, debts guaranteed by third parties or if you are the main financial provider in your household. Conversely, it may be unnecessary if your children are adults and your assets are already consolidated.

Speak to an insurance advisor before automatically renewing the policy offered by your bank; simply reviewing it could save you 40% a year.