In the event of the death of a person with a life insurance policy covering this contingency, a series of procedures are necessary in order for the beneficiaries to be able to collect the amount due to them. Let us see what they are.
Registration of Insurance Contracts with Death Coverage
The first thing to do, if we do not know exactly what policies the deceased person may have had contracted, is to go to the Registry of Insurance Contracts for death coverage.
In the link we already explained what you need to know about it. Basically, it gathers the life insurance policies in force by the deceased, the company with whom he/she was subscribed and, if he/she was a beneficiary, of which of them is the person who makes the consultation. The procedure is very simple and we recommend to always do it, even if you think that he only had one insurance, maybe he had an additional accident or life insurance with a credit card, and you are entitled to a higher compensation.
Once we know which insurances we are beneficiaries of, we should request a certificate from the insurance companies where the life insurance was in force, in order to know the “exact” amounts we will receive.
How is life insurance collected?
We have two alternatives:
- Settling these life insurance amounts in the Inheritance Tax(together with the rest of the inheritance): in this case the amount to be received is added to the rest of the assets and rights of the deceased, and it is necessary to take the ordinary steps to process an inheritance. This is more complex than the other option.
- If we want to collect only the life insurance immediately(leaving the rest of the inheritance for later): in this case, we will have to make a partial liquidation of the tax, as we will now explain.
Partial Inheritance Tax liquidation
The first thing to do is to fill in form 650 of the Tax Agency and then proceed with the liquidation of the corresponding tax. This tax, logically, is linked to the amount that we receive, and in which the corresponding reductions will be applied due to the kinship of the beneficiaries with the deceased insured.
The amount to be paid must be paid either at the tax office or at the collaborating entities.
This self-assessment form must be submitted within six months from the day following the day on which the tax is due. In addition, it must be accompanied by the certificate requested from the company certifying that the person is a beneficiary and for what amount.
If you want us to help you, call us or write to us. At PIB Group Iberia e Inversión we make it easy for you to contract and get advice on the best life insurance policies, thanks to more than 30 years of experience.
