When a person dies, their family members have to do various procedures and pay many bills: the funeral, taxes … Hiring life insurance will prevent our relatives from suffering to pay all that money when we are gone.
Unfortunately, we will all have to say goodbye to a relative. And, when he is a person very close to us, the financial cost is also added to the emotional pain.
1. Burial expenses
When we think of the most important expense when a person dies, we undoubtedly think of the funeral.
How much does a funeral cost in Spain?
A full burial, but not too ostentatious, costs an average of 3500 euros . This was discovered by the Organization of Consumers and Users (OCU) a few years ago, when it collected information from various funeral homes. However, it is only an approximate price, because it depends on many factors: the company, the cemetery, the city …
The coffin, the obituaries, the hearse, the flowers, the rental of the funeral home … The more services we want to add to the ceremony, the more the bill will skyrocket.
2. Inheritance tax
When a person dies, their assets and debts are distributed among their heirs. Although losing a loved one is a great emotional and economic blow, the Treasury only takes into account that we have received money. Thus, when accepting the inheritance you have to face the inheritance tax (IS) , a rate that varies greatly depending on several factors:
- The amount of money inherited.
- The degree of kinship between the deceased and the heir. Children under 21 years have the least to pay, followed by spouses, parents and children over 21 years.
- The autonomous community. There are some regions in which the closest relatives are exempt from the 99% of this tax.
What happens if a deceased relative leaves me a home?
Expenses grow if, when someone dies, they bequeath a home. Not only will you have to pay the inheritance tax taking into account the value of the property, but you have to face other fees. These are the other two expenses that will be added to the funeral and inheritance tax.
3. Capital gain
The heirs must pay the increase in the value of urban land , that is, the known municipal capital gain . When the ownership of the house is changed, this tax will also have to be paid to the city council of the city where it is located. The final amount will depend on several factors, which are set by the council itself.
4. Change of ownership of the goods
Once the inheritance tax and the municipal capital gain have been paid, the change of ownership of the house must be made at the Property Registry. It is a process that takes a long time and that may even force you to hire a legal advisor (which will increase the total cost).
The main expense of this step will be the notary. The notary does not set the price, but it is an amount set in the Royal Decree 1426 / 1989. In general, the notary's fee will depend on the value of the property and the length of the document that is drawn up .
5. Loss of income
Without a doubt, the greatest cost when a person dies is the loss of income. The family will no longer receive the deceased's salary or pension and, in addition, will have to face all the expenses that we have already mentioned before. For example, if a person earned 1500 per month and dies, their household will stop earning 18. 000 euros per year. Instead, the invoices will still be there.
This loss of income can be direct (that is, the deceased will no longer bring a salary) or indirect. This is the case, for example, of housewives and householders. They are people who do not bring money, but whose shares have a very high value for the home. Without them, other services would have to be paid (daycare, for example).
The solution: protect yourself with life insurance
Unfortunately, something can happen to all of us that prevents us from continuing here with our loved ones. But there is one thing we can control: the economic health of those we love the most.
When a person dies, the expenses multiply for their relatives. As we have already seen, only the funeral can cost us more than 3000 euros at a time. What if our family does not have that money and needs to borrow?
Being protected with life insurance gives you the peace of mind that, whatever happens, those expenses will not have to worry your family. You can hire the capital you want (30. 000, 50. 000, 200. 000 euros) so that, if you die, your beneficiaries receive it. They will be able to use it for whatever they want: pay the pending mortgage, pay taxes, go to university …
In addition, many life insurances include burial expenses. In general, they cover between 3000 and 5000 euros, so they allow you to forget about a very important expense. In other words: they cover the same as funeral insurance and much more.
You can quickly find out which insurance companies include burial expenses in our comparator. You will also be able to see how much a policy adapted to you would cost, with the coverage you want, and choose the price that most convinces you.
You have to pay a lot of money when someone close to you dies. Don't let that be a problem for your family. Trust in life insurance to protect those you love the most . Enter our comparator and convince yourself: tranquility only costs a few euros a year.