We should bear in mind that from the beginning of April
the right of withdrawal was suspended for products, to protect it, but this does not apply to insurance. Insurance is not treated as a "product" under Spanish consumer protection law, since it is not a movable good.
In individual life policies, as in practically all insurance contracts concluded at a distance, policyholders are given the option, within a set period, of deciding not to proceed with the contract.
LIFE INSURANCE (NOT CONTRACTED AT A DISTANCE)
Policyholders are given the right to terminate the contract unilaterally, without stating a reason and without any penalty, provided that:
They notify the insurer of their wish to terminate within 30 days of receiving the policy or the provisional cover document.
The policy has a term of more than 6 months.
It is NOT a contract in which the policyholder bears the investment risk, or in which the guaranteed return depends on the investments assigned to the contract (unit-linked).
The policyholder has this right whether they are also the insured party or a different person.
The right of termination is exercised as set out in the contract, and sent in writing or on another durable medium.
The insurer is entitled to charge the portion of the premium corresponding to the period of cover from the start of the contract to the date the termination is notified.
INSURANCE CONTRACTED AT A DISTANCE (WHETHER LIFE OR NON-LIFE)
Policyholders are given the right to withdraw from the contract without stating a reason and without any penalty, provided that:
The intention to withdraw is sent to the insurer, in writing or on another durable medium, within 14 days (non-life) or 30 days (life), counted from when the policyholder is notified that the contract has been concluded, or from receipt of the contractual information if this is received later.
It is NOT travel or luggage insurance with a term of less than one month.
It is NOT insurance with a term shorter than the withdrawal period itself.
It is NOT insurance that is compulsory for the policyholder.
It is NOT an insured pension scheme (a life insurance contract with the same operation and purpose as a pension plan).
When the right of withdrawal is exercised, the portion of the premium corresponding to the period during which the policy was in force must be paid (the days elapsed from the contract taking effect to the date the withdrawal is notified). This amount must be settled within a maximum of thirty calendar days from when the withdrawal is notified.
However, if the insurer failed to inform the policyholder of the existence of the right of withdrawal, or began performing the contract without the policyholder having requested it, the policyholder will not be required to pay the amount referred to above
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