Life insurance: A mosaic of coverage for your peace of mind

The word “insurance” ultimately traces its roots back to the Latin securus, meaning “without worry”. And that’s precisely its mission: to offer certainty. A life insurance policy is an agreement with an insurer that, in exchange for a regular premium, guarantees a sum of money will be paid to beneficiaries if the insured person dies. In some cases, it can also provide compensation if the insured person survives to a certain age.

Beyond financially safeguarding loved ones, certain types of life insurance can also function as a savings or investment tool, with capital accumulating over time.

Societies have sought ways to protect against death since ancient times. In ancient Rome, there were already communal funds to help the families of the deceased. Modern life insurance, meanwhile, emerged in the 17th century in England, aimed at merchants and sailors who wanted to protect their families from the potential loss of their source of income.

During the 19th century, with the Industrial Revolution, policies became popular in Europe and America. At that time, policies covered only death. But over time, they expanded their coverage to include disability and savings & investment options.

Today, digitalization has enabled the development of more flexible and accessible policies. This transformation has driven sector growth. According to Deloitte's 2025 Global Insurance Outlook report, premiums are projected to increase by 1.5% in advanced markets and 5.7% in emerging economies like China, India, and Latin America.

This growth reflects a greater awareness of its importance. More people are seeking to protect their future and that of their loved ones, adapting life insurance to their needs.

As we mentioned earlier, life insurance can address different goals. Generally, they are divided into two main categories: risk insurance and savings insurance.

1. Risk life insurance

Their purpose is to guarantee financial stability for beneficiaries in the event of the insured's death or disability. They are essential for those looking to protect their family against unforeseen events.

• Term life insurance. This is the most basic type. It offers coverage for a specific period (one, five, fifteen years or more, depending on individual circumstances). If the insured person dies during that time, beneficiaries receive the insured sum. It's an accessible option, ideal for covering mortgages or children’s education.
• Whole life insurance. This provides lifelong coverage, as long as premium payments are maintained. It’s an exclusive product where you always pay the same premium, but the insured capital increases over time, and it also allows you to recover part of the money contributed. Although it includes a savings component, its main function is to protect loved ones.

2. Savings and survival insurance

These combine protection with the possibility of generating future capital. They are ideal for those who want to save with financial backing.

• Guaranteed savings insurance. These prioritize capital security, offering predictable returns. They include PIAS (the Spanish abbreviation of “Individual Systematic Savings Plans”), which generate a lifelong annuity, and endowment insurance, which guarantees a payment at the end of the contract if the insured is still alive.
• Unit linked. A portion of the capital is allocated to paying the insurance premium, and the rest is invested in a basket of funds or financial assets. Its profitability depends on market behavior, so it carries a certain level of risk.
• Life annuity insurance. In exchange for an initial contribution, the insured person receives a monthly income for life. This is an ideal option to supplement retirement income and gain greater stability. Depending on the type of annuity taken out, beneficiaries may receive a certain capital if the insured dies.

Taking out a life insurance policy is a key decision to protect your loved ones and secure your peace of mind. To choose the most suitable option, consider these aspects:

1. Define your priority. Before taking out the policy, identify your main goal. Do you want to protect your family? Are you interested in generating savings? Or are you looking for an investment that provides future stability?
2. Calculate the necessary coverage. Not everyone requires the same insured sum. Evaluate how much your beneficiaries would need to maintain their quality of life if you were no longer there. Consider expenses like mortgages, education, living expenses, and debts.
3. Review flexibility. Some policies allow you to adjust premiums and coverage over time. If your financial or family situation changes, it’s useful to have insurance that adapts to your new demands.
4. Consult an expert. At MAPFRE, we understand that choosing life insurance can raise questions. That’s why we have a network of specialized advisors who will help you find the policy that best fits your needs and goals. Discover our wide range of offerings designed to adapt to your needs and those of your family.

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