Ibercaja Vida has raised the interest rates on its life annuity insurance policies, which can offer annual returns of up to 4% depending on the customer’s age and circumstances. The product had more than €2.3 billion under management as of September 2026, after growing by more than 12% over the past year.
Ibercaja raises life annuity returns to as much as 4%
The revised terms come as long-term interest rates stand at their highest levels in a decade. According to Ibercaja Vida, Spain’s 10-year government bond yield is nearly one percentage point above its level a year ago, amid increased government financing needs and expectations of high public debt issuance.
The new terms offer annual returns of up to 4%, which may be equivalent to a tax-adjusted financial return of 4.68% thanks to the tax treatment of this type of insurance. The final rate depends on each customer’s age and individual circumstances.
Assets under management in Ibercaja Vida’s life annuities exceeded €2.3 billion at the end of September 2026. That figure represents an increase of more than 12% from the same period a year earlier, while sales of the product have risen by nearly 20% over the past three years.
Life annuities turn savings into monthly income for life
Life annuities make it possible to convert accumulated savings into a guaranteed monthly income for life. Ibercaja markets this option particularly to conservative investors seeking regular income and long-term financial stability.
The tax treatment reduces the taxable portion of each payment. In certain cases, the taxable share can fall to as little as 8% for those who purchase a life annuity from the age of 70. In addition, people over 65 may qualify for a potential exemption from capital gains on the sale of assets if they reinvest the proceeds in certain life annuity arrangements and meet the requirements established by law.
The example provided by the institution considers a 65-year-old customer who allocates €100,000 to a life annuity paying 4%. The customer would receive a gross lifetime income of €316.79 per month and, after applying the relevant tax treatment, €302.34 net per month. The transaction would be equivalent to a tax-adjusted financial return of 4.57%.
Interest in insurance-based savings products rises among older customers
Ibercaja Vida attributes rising demand to improved returns and the search for products combining stable income with tax advantages. The institution says this interest is particularly significant among older people seeking to supplement their retirement income with accumulated savings.
Ibercaja’s insurance-based savings offering ranges from customers beginning to build wealth through regular contributions to those who need to convert that capital into recurring income. The institution has a network of specialists to assess each case and propose solutions tailored to each customer’s financial needs and objectives.
