Life Insurance

Arranging life insurance is to guarantee being able to face complicated circumstances with the greatest possible peace of mind and support.

• Death. In the event of your death, your beneficiaries will receive the amount insured under the policy.
• Additional lump sum for accidental death. In addition to the main death benefit, an extra lump sum will be paid if death results from an accident.
• Additional lump sum in the event of death following a road traffic accident. In addition to the main death benefit, both the accidental death benefit and the road traffic accident benefit will be paid.
• Permanent total disability. Meaning an irreversible physical condition that permanently prevents you from carrying out any profession, occupation, employment or business activity. The disability must be officially recognised by the Spanish Social Security system or an equivalent authority.
• Severe disability. A state of disability resulting from anatomical or functional loss that renders you permanently dependent on another person to carry out the most basic activities of daily living, such as dressing, moving around or eating. The disability must be officially recognised by the Spanish Social Security system or an equivalent authority.
• Female cancer cover. If the insured is diagnosed² with female cancer, the insured amount will be paid for this cover. This includes both cancer and carcinoma in situ (early-stage, localised cancer that has not spread) affecting any of the following organs or tissues: cervix, uterus, ovaries, fallopian tubes, vagina, vulva or breasts, and placenta (placental carcinoma). Note that female cancer cover will terminate upon payment of this benefit.

In addition to the cover provided, Family Plus and Women’s Life Insurance policies include additional services such as medical guidance, nutrition and diet advice, as well as healthy lifestyle assessments.

For the Family Protection Plus, Family Protection for Women and Essential Family Protection insurance policies, the beneficiaries previously appointed by you will receive the compensation if you die. For other cover, the compensation will be received by the insured party.

For Mortgage-Linked Life Insurance, in the event of death or permanent disability, Banco Santander, as beneficiary, will receive an amount equal to the outstanding mortgage balance, up to the maximum sum insured. If the sum insured exceeds the outstanding mortgage balance, the remaining amount will be paid to the beneficiaries named in the policy. Where unemployment or temporary disability cover is included, the insured person will be the beneficiary.

For the Family Protection Plus, Family Protection for Women and Essential Family Protection life insurance policies, they may be changed at any time, except where the beneficiary has been appointed as irrevocable.

This refers to death caused by any external, sudden and violent event, beyond the control of the insured party, resulting in death within 365 days from the date of occurrence. In no case is myocardial infarction or cerebrovascular disease considered an accident.

Accidental Death due to road traffic accident is understood to be that which occurs as a pedestrian caused by a vehicle, as a driver or passenger in a motorised land vehicle and bicycle, or that occurred as a passenger in public land, sea or air means of transport.

An irreversible physical situation, which disables you completely and permanently for the performance of any profession or trade, employment relationship or commercial activity. It must be officially recognised by Social Security or other equivalent body.

A situation of disability which, as a result of anatomical or functional losses and also implies the need for assistance from another person to perform the most basic day to day actions, such as dressing, moving, eating or similar. It must be officially recognised by Social Security or other equivalent body.

Yes. The capital covered will not be paid in case of:

• Suicide, attempted suicide, crime, gambling, challenges or fights in which you participate (unless in legitimate self-defence).
• Events caused by the consumption of drugs or alcohol.
• Illnesses or accidents not declared prior to taking out the insurance.

There is no obligation to take out a life insurance policy associated with the loan subscribed by you nor is there any obligation to take it out with Santander Vida Seguros y Reaseguros, S.A. or Santander Seguros y Reaseguros, S.A., and it may be contracted, where appropriate, with any Insurance Company authorised to operate in Spain. Likewise, if there is any advantage for taking out the insurance, you must go to the loan information.

Depending on the type of premium payment you choose, there are different types of life insurance linked with the mortgage:

Regular premium: the life insurance premium linked with the mortgage varies as the mortgage is repaid and as the term of the contract gets closer.

Single premium + regular premium: the cost of the mortgage-linked life insurance is paid at the start and then for 3 years. After 3 years, the insurance is paid via a regular premium which is renewed annually, with the option of paying in instalments on a semi-annual or quarterly basis.

Mortgage-linked life insurance means that, in the event of death or another event covered by the policy, the insurance will cover the outstanding debt owed to the bank, up to the sum insured stated in the policy.

The maximum capital per insured person in the policy must be the same as the capital or amount of the loan pending repayment at any given time. The insured capital is calculated as the product of the outstanding capital of the loan times the percentage of the insured. In the case of a single insured person, the percentage of insurance may be between 60% and 100% of the outstanding capital of the loan. In the case of 2 insured parties, the percentage of insurance may be between 30% and 100% of the outstanding capital of the loan, in this case the sum of the percentages of the insured will be at least 60%.

If a percentage of less than 100% is selected for each insured person, the policy will not cover the full outstanding balance of the insured loan at any given time, as shown in the loan repayment schedule.

In case of death or absolute permanent disability, the irrevocable beneficiary will be Banco Santander for the amount of the mortgage pending repayment, and up to the limit of the insured sum. If the insured sum exceeds the unpaid capital of the linked mortgage, the difference will be received by the beneficiaries named in the policy.

In the event of temporary disability or unemployment, the insured person will be the beneficiary and will receive the benefit calculated by the insurance company in accordance with the terms of the policy. The insured person will remain responsible for making the repayments and meeting all other obligations arising from the loan.

Depending on the selected product, coverage may include:

• Death:In case of death due to illness or accident suffered by the policyholder, the insured sum will be the result of multiplying the percentage of insurance by the outstanding principal of the mortgage at the date of the claim.

Suicide or attempted suicide would not be covered, with suicide being understood as death caused consciously and voluntarily by the policyholder.

Illnesses or accidents prior to the date of effect of the policy, known and not declared by the policyholder, are also not covered.

• Absolute Permanent Disability: This is an irreversible physical situation, which completely and permanently prevents you from pursuing any profession or trade, employment or commercial activity. It must be officially recognised by Social Security or another equivalent body. The insured sum will be the result of multiplying the insurance percentage by the outstanding principal of the mortgage as at the date of the claim
• Unemployment and Temporary Disability: applies depending on the client's employment relationship on the date of occurrence of the claim.
  
  
  • For employees with an indefinite contract of more than 13 hours per week (except civil servants and permanent discontinuous workers):

  They will have Unemployment or Temporary Disability coverage, which cannot be received simultaneously.
  The insured capital is the percentage of the insured loan applicable to the loan repayment quota, on the date of occurrence of the claim, with a maximum monthly amount of €1,350 and a maximum limit of 10 payments per claim and 30 payments in the total number of claims during the term of the policy.

  • For self-employed workers, civil servants, employees with a temporary contract, permanent discontinuous workers, permanent workers with contracts of less than 13 hours a week, housewives, students or people without paid work:

  They will have Temporary Disability coverage..
  The insured capital is the percentage of the insured loan applicable to 150% of the loan repayment quota, on the date of occurrence of the claim, with a maximum monthly amount of €2,025 and a maximum limit of 10 payments per claim and 30 payments in the total number of claims during the term of the policy.

If you make a partial or full repayment of your mortgage, the effect on your insurance will depend on the type of policy you have taken out:

• Single Premium: if you make a partial repayment, the insured amount will be reduced in proportion to the amount repaid. Where applicable, a partial premium refund will be made based on the amount repaid. If you repay the mortgage in full, the policy will be cancelled and any unused premium refunded.
• Regular Premium: if you make a partial repayment, the insured amount will remain unchanged until the next annual renewal. At renewal, the insured amount will be updated to reflect the outstanding mortgage balance following the repayment. If you repay the mortgage in full, the policy will be cancelled and any unused premium refunded.