Life insurance is often associated with mortgages and the question of what happens when we die. But there is more to it than many people realise.

Here are five points worth knowing.

1. Your family may not know you have a policy.
Spain has a public Registry of Insurance Contracts with Death Coverage. This allows interested people to check whether a deceased person had qualifying life insurance.

2. Life insurance can cover more than death.
Depending on the policy, cover may also include permanent disability or incapacity. The exact protection depends on the contract.

3. Keep your beneficiaries up to date.
Marriage, divorce, children and other changes in family circumstances can affect who you want to receive the benefit. It is worth reviewing your beneficiaries regularly.

4. The information you provide matters.
Health and risk information given when applying can affect the price and terms of your policy. Insurance questionnaires should always be completed accurately.

5. The price of life insurance can vary depending on where you buy it.
Banks often offer life insurance alongside mortgages, but the cost and conditions can differ from policies available through insurance brokers. A broker can compare options from different insurers and help you understand the differences in price, cover and conditions before making a decision.

A broker’s perspective
In my experience, the biggest problem is not necessarily having the wrong insurance. It is having a policy that has not been reviewed as life has changed.

Your mortgage, income, family, business and financial responsibilities can all change over time.

If you are not sure, reviewing your policy can help ensure your protection still matches your circumstances.