Choose from natural primary or secondary primary in a life insurance policy It is one of the most important decisions when purchasing this policy. It is not just about paying less today, but about understanding how the price will evolve over the years, what stability you need, and what will happen when you are 60, 70, or 80 years old.
The natural premium is usually cheaper at the beginning, but it gradually increases with age. The levelled premium usually starts with a higher premium, but offers greater stability in the long term. There are intermediate formulas between the two, such as mixed prime or the Primarily natural, and also options such as first single, This is common in certain advanced ages.
At PIB Group Iberia we work with solutions from death insurance And we can help you compare premium plans, service capital, coverage, contract age, upgrades, limits, and renewal conditions before making a decision.
Updated in September 2026
Content revised in accordance with Law 50/1980 on Insurance Contracts; public information from the Directorate-General of Insurance and Pension Funds regarding claims in death insurance and current contractual criteria regarding premiums, renewals and the provision of funeral services.
Quick answer: Natural premium or level premium?
- Natural premium: It can be interesting if you are looking for a low initial fee, but you should assume that it will increase with age and the cost of the service.
- Level premium: It might fit if you're looking for greater long-term stability, although the initial fee is usually higher.
- Mixed premium: It combines an initial phase that is cheaper with a conversion later on to a more stable premium.
- Prima naturalistic: It is calculated by age brackets, not necessarily every year, so there may be relevant periodic increases.
- Single premium: It can be an option in advanced ages, but it requires paying the insurance fee once and carefully reviewing the capital, services, and updates.
What is the premium in a death insurance policy?
The insurance premium It is the price paid by the policyholder for the policy. In a death insurance policy, this premium is calculated taking into account factors such as the insured’s age, the sum insured, the location or province of the funeral service, the included coverages, the premium type, and the update rules provided in the contract.
In death insurance policies, the main benefit is usually not the direct payment of compensation, but the provision of the agreed funeral service. The Insurance Contract Act states that, for death insurance policies, the insurer is obliged to provide the funeral services agreed upon in the policy when the insured dies.
You can check the Law 50/1980 on the Insurance Contract.
You can also expand on this concept in our guide on What is the premium of an insurance policy.
Natural, level, mixed, semi-natural and unique types: comparison
The premium plan determines how much you pay at the beginning, how the premium will evolve, and what financial effort you will have to make in old age.
| Type of premium | How it works | Main advantage | Risk or point to review |
|---|---|---|---|
| Natural prime | The premium is recalculated periodically based on age and other factors. | Lowest initial fee. | It can become very expensive in advanced ages. |
| First level | The goal is to maintain a more stable premium over the life of the insurance policy. | Greater long-term predictability. | It can start out more expensive and can also be upgraded for capital or service. |
| Mixed first prize | It starts with logic similar to natural prime and progresses smoothly to an agreed-upon age. | Balance between initial price and future stability. | The conversion age, formula, and resulting premium must be reviewed. |
| Prima naturalistic | The premium is updated by age bracket, usually every few years. | It can be more stable than the annual natural one. | There can be significant price fluctuations when changing sections. |
| First single | It is paid for once when the policy is taken out. | Avoid future periodic quotas. | It requires a high initial outlay and requires monitoring for future updates or deficiencies. |
On mobile, slide the table horizontally to see all the information.
What is the natural premium in a death insurance policy?
The natural raw material It is a mode in which the premium is calculated based on the risk at any given time. In the case of death, this means that the age of the insured person plays an important role: the older the insured person is, the higher the premium may be.
It usually is an option with a lower initial premium, especially in younger ages. However, that initial advantage can turn into a problem if the policy is kept for many years and the premium gradually increases with age.
This modality may be suitable if:
- You want to pay a low fee at first.
- You hire at an early age and want flexibility.
- You're not sure if you'll keep the policy for the rest of your life.
- You understand that the premium can increase significantly at an advanced age.
The main risk is to sign up for insurance only on the basis of the initial price and not to check how much the insurance may cost within 10, 20 or 30 years.
What is the level premium in a death insurance policy?
The level premium It is a modality designed to offer more stability over time. Instead of recalculating the premium each year primarily based on age, the insurer distributes the expected cost of the insurance more uniformly.
This does not mean that the price can never change. The flat premium can be updated by the increase in the cost of the funeral service, by insured capital, by taxes, by contracted guarantees or by the update rules provided for in the policy.
It may fit if:
- They seek predictability and long-term stability.
- You don't want to accept steep age-related increases in advanced stages.
- Contracts are signed from middle-aged or mature ages.
- You prefer to pay a little more at the beginning to reduce future uncertainty.
Before choosing it, check if the premium is actually level, what updates it may have and whether the insured capital will adjust to the actual cost of the funeral service.
Difference between natural premium and level premium
The main difference lies in when you pay more. With a natural premium, you pay less initially, but you assume more steep future increases. With a level premium, the initial premium is usually higher, but the economic burden is spread out better over time.
| Criterion | Natural prime | First level |
|---|---|---|
| Initial fee | Lower than usual. | Higher usually. |
| Evolution with age | It increases as age increases. | It should not be increased based on age in the same way, although it can be updated based on other factors. |
| Predictability | Long-term decrease. | Mayor, if the policy clearly defines the rules for updates. |
| Accumulated cost | It may be attractive at first, but become much more expensive over the years. | It may be higher at first, but more stable in later ages. |
| Typical profile | Young people or those who prioritize low initial cost. | People who want stability and continuity in the long term. |
On mobile, slide the table horizontally to see all the information.
Mixed premium in death insurance
The mixed prime It attempts to combine the advantages of a natural and a flat premium. During the first years, it works more closely with a natural premium, with more contained initial premiums. From a stipulated age, it usually transforms into a more stable or flat modality.
This option may be interesting for people who don't want to pay a higher, flat premium from the outset, but also don't want to expose themselves to steep increases in old age.
Before you sign up for a mixed premium, check it carefully:
- Exact age at which it becomes level.
- Estimated premium at the time of conversion.
- If the conversion is guaranteed contractually.
- What happens if the coverages or the insured capital change?.
- How the cost of the funeral service is updated.
- If there are limits, surcharges, or special conditions based on age.
Prima seminatural: what it means
The Primarily natural It is an intermediate modality in which the premium can be recalculated by age brackets. It does not necessarily increase every year as a pure natural premium, but it can experience increases when the insured person moves to a new bracket.
It may seem stable for a few years, but it is necessary to check when the premium jumps occur. A periodic increase can be acceptable if it is planned, but problematic if the buyer has only looked at the initial price.
In this type of policy, it is advisable to request an indicative projection of future premiums and to check whether the insurer clearly reports the expected evolution.
First female in death insurance
The first single consists in paying the policy cost in one go. It is usually considered in advanced ages or when the insured prefers to avoid periodic payments.
This option can provide peace of mind because it eliminates future premiums, but it requires a very careful review of what is being purchased. It is not enough to know the initial amount: it is necessary to check service capital, coverage, updates to funeral costs, potential deficiencies, included services, and rules if the service ultimately costs less than the insured sum.
The Insurance Contract Law states that in the case of death insurance, if there is an excess of the sum insured over the cost of the service provided by the insurer, that excess is the responsibility of the policyholder or, in default, the heirs. However, it is advisable to review how each policy develops this.
What type of premium should you choose based on your age and goals?
There is no best premium for all cases. The choice depends on the age of hiring, budget, desired stability, and the expected duration of stay.
| Profile | A mode that can fit in | What to check before hiring |
|---|---|---|
| Young person looking for a low fee | Natural or mixed primer. | Future evolution, age of conversion and accumulated cost. |
| Person aged 50 to 65 | First-class, mixed or semi-natural, depending on budget. | Current fee, projected increases, capital and services included. |
| Senior citizen who does not want regular payments | First single. | Total amount, service update, coverage and excess of the insured sum. |
| Family with several insured people | Combined mode according to each insured person's age. | Not all members necessarily need the same premium plan. |
| Person who already has an old insurance | Review before changing. | Age, current premium, services, capital, updating and possible loss of conditions. |
On mobile, slide the table horizontally to see all the information.
Do you want to review your death insurance?
At PIB Group Iberia we analyze your age, premium type, service capital, coverage, future evolution, and renewal conditions to help you compare alternatives. Requests a personalized assessment.
Does the flat premium never go up?
Not necessarily. This is one of the most common mistakes. The fact that a premium is level is not a guarantee that the receipt will remain unchanged throughout the life of the insurance policy.
The flat premium should not be increased each year based on age in the same way as a natural premium, but it can be updated based on:
- Increase in the cost of funeral services.
- Update of the insured capital.
- Changes in contracted warranties.
- Applicable taxes or surcharges.
- Review rules provided for in the policy.
The Directorate-General of Insurance and Pension Funds has pointed out that, if the policy does not specify the future amount of the premium or the rules for its automatic calculation, the proposal to modify the premium at renewal must be communicated to the policyholder in accordance with Article 22 of the Insurance Contract Act.
How much does the death insurance increase per year?
There is no single increase. It depends on the premium plan, the insured's age, the insured sum, the cost of the funeral service in the area, and the rules for updating the contract.
In general terms:
- Natural premium: It can be adjusted by age and by service update.
- Level premium: It can be updated by capital or service cost, but it should not grow with age in the same way.
- Mixed premium: It can rise during the natural phase and stabilize when it passes into the leveled phase.
- Prima naturalistic: It can stay in one place for a while and move on to the next one when it passes by.
- Single premium: There are no periodic fees, but it is necessary to check whether the capital covers future service updates.
Therefore, when comparing death insurance policies, it is not enough to look at this year's receipt. It is advisable to request a clear explanation of how the premium will evolve.
What does a death insurance cover?
Death insurance is designed to organize and provide the funeral service agreed upon in the policy. The specific coverage depends on the contract, but it usually includes services related to the death and the subsequent administrative management.
Among the usual coverages can be found:
- Funeral service.
- Coffin, urn or funeral items according to the mode of use.
- Funeral home, ceremony or associated services, if contracted.
- Burial or cremation.
- National or international transfer, if included.
- Management of documentation and administrative procedures.
- Family assistance.
- Legal advice or management, according to the policy.
You can find more information on our page death insurance and in the article about Reasons why you should take out a funeral insurance policy.
What should I check before choosing the premium plan?
The premium option is important, but it should not be analyzed in isolation. Two policies with the same premium can offer very different coverage.
Check the checklist before hiring
- Premium mode: natural, leveled, mixed, semi-natural or single.
- Age of each insured person.
- Current situation and future projection.
- Funeral service capital.
- Province or locality where the service is provided.
- Form of capital update.
- Funeral services included.
- National or international transfer.
- Legal assistance, management services or complementary services.
- Exclusions and limitations.
- Rights in the event of the concurrence of death insurance policies.
- Renewal conditions and opposition to the extension.
What is the purpose of age in death insurance?
Age can influence how the premium has historically been calculated and the cumulative terms of the policy, but it should not be confused with a “reserve” that can always be freely recovered.
Before changing to a new life insurance policy, it is advisable to check:
- Current type of premium.
- The fee that is being paid.
- Capital of service and if it is up to date.
- Truly included services.
- Age of each insured person.
- Conditions for permanence or renewal.
- If there are specific rights in the policy.
- Cost of hiring a new alternative to the current age.
In many cases, changing can be interesting. In others, it may involve losing conditions that are worth evaluating before making a decision.
Competition in death insurance: what happens if there are two policies
It can happen that a person has more than one death insurance policy, for example, because they are included in an old family policy and have also taken out another individual policy.
The Insurance Contract Act regulates the coverage of death insurance. If there is more than one policy with the same insurer, the insurer must, at the request of the policyholder, refund the premiums paid on the policy that is decided to be cancelled after the coverage has occurred. If there is coverage between different insurers and one of them does not provide the service, it may be obligated to pay the insured’s estate the sum insured, in the terms provided by law.
Therefore, before contracting a new life insurance policy, it is advisable to check whether you are already covered by a family policy.
Can the insurer not renew a life insurance policy?
In death insurance there is a specific rule: the opposition to the contract extension can only be exercised by the policyholder. This strengthens the continuity of this type of policy, especially relevant when the insured is elderly.
Still, that does not mean that the policyholder can ignore the payment of the premium or contractual obligations. The Insurance Contract Law regulates the effects of premium non-payment. If a premium is not paid in a subsequent period, coverage may be suspended one month after the expiration and the contract may terminate if the insurer does not claim within six months thereafter.
What happens if I can't pay the premium?
If the premium becomes too high, it is not advisable to stop paying without reviewing alternatives. Before returning a receipt or abandoning the policy, it is best to consider options:
- Check whether the service capital is oversized.
- Eliminate irrelevant additional coverages.
- Compare premium plans.
- Valuing a mixed, graduated, or single premium according to age.
- Check if there are duplicate insured persons in another policy.
- Requesting advice before canceling an old insurance policy.
You can also check out our guide on What happens when you return an insurance receipt.
Common mistakes when choosing a premium for a life insurance policy
- Choosing only by the initial fee: A natural premium can be cheap at first and expensive in later ages.
- The idea that the level premium never rises: It can be updated by capital, service or policy-based rules.
- Do not ask for future projection: It is important to know how the receipt may evolve.
- Not reviewing the insured capital: It must be adjusted to the actual cost of the funeral service.
- Contracting for unnecessary complementary services: They can increase the premium without adding any real value.
- Do not check for duplicates: There may be insured people included in various death policies.
- Changing an old policy without analyzing it: It can involve losing accumulated conditions.
- Not differentiating between mixed and semi-natural primary forests: Both of them may seem to be intermediate, but they work in different ways.
How to properly compare death insurance policies?
To compare properly, it is advisable to analyze the full policy and not just the monthly receipt.
- Identify the premium modality: Natural, levelled, mixed, semi-natural or unique.
- Check the age of each insured person: Not all members of the family have the same risk or the same benefit.
- Check the service capital: It must be consistent with the funeral costs in the area.
- Coverage analysis: Funeral service, transportation, cremation, management, assistance and extras.
- Requests future premium evolution: Especially in natural, mixed or semi-natural prime.
- Check update rules: IPC, service cost, insured capital or contractual revision.
- Detects duplications: Avoid paying twice for the same need.
- It values the accumulated cost: Not just the price for the first year.
Compare your death insurance with personalized advice
The best premium option for a life insurance policy depends on your age, budget, desired stability, family composition, and time horizon. A flat premium can be attractive at first, a level one can provide stability, a mixed one can balance both options, and a single premium may fit certain advanced age profiles.
At PIB Group Iberia we can help you review your current policy, detect if you are paying too much, compare policies, and assess whether it makes sense to keep, change, or adjust your insurance.
Requests a personalized assessment and sarewe reviewed what alternative of death insurance It might fit better with you and your family.
