Unlike other insurances, in which we cover contingencies that revert to ourselves, be it our health, a blow to the car or a loss in our home, in Life Insurance, we do it essentially thinking of others, in the economic protection of those we love most. For all these reasons, a figure of the beneficiary , the person in whom in the event of death he will receive the economic benefit stipulated in the insurance contract, acquires special importance.
The express choice of the same brings advantages and facilities in many cases at the time of collection, but the issue is that there is no such obligation and therefore in many cases at the time of death we can find that there is no designated beneficiary. If so, in case of death, the amount of life insurance will be received by the legal heirs of the insured person .
If on the opposite side, there is express designation of the beneficiary, in this case the law provides for two ways of doing so, either in the policy itself or this express designation can be made in the will.
Rights and obligations of the beneficiaries
The fundamental right of the beneficiary of life insurance is the collection of the economic benefit agreed in the policy, but also has a series of obligations before receiving this perception.
To receive it, you must identify yourself to the insurance company. If you are listed as a beneficiary expressly in the policy, you will not have any problem, if not, you will have an additional procedure, submit the corresponding designation of heirs made before a Notary, either because there is a will or because they are legally established after applying for a certificate. Acts of Last Will. This document certifies if a person has given a will (may have made several, the most important being the last one that annuls the previous ones) and before which Notary or Notaries. In this way, the heirs may go to the authorizing Notary of the last testament and obtain an authorized copy thereof and with it perform any inheritance act such as the collection of life insurance.
The next step is to liquidate the taxes that entail the collection of life insurance. The perception of money by the beneficiaries of life insurance as a consequence of the death of the insured person, provided that the contractor is different from the beneficiary, is subject to the Inheritance and Donations Tax . With this, the amount received by the beneficiary must be accumulated to the value of the assets and rights that are part of his share in the inheritance. But, in order to collect the life insurance without waiting for the inheritance process, it is usual practice a partial self-assessment of the tax for the value of the policy, taking into account that the rest of the inheritance must be presented and / or self-assessed before the end of the six-month period. The insurers can not make the payment of the policy effective if it is not justified to have presented the corresponding documentation or have self-assessed the tax.
Finally, we must not forget another right, to be able to consult the existence of any insurance in order to manage its collection. In Spain there is a registry of Insurance Contracts with Death Coverage since 2005. This public register under the Ministry of Justice can find all the necessary information so that the beneficiaries of a life insurance can know if a deceased person had contracted this type of products case as well as get all the necessary information to be able to claim the insurer .