Secure Your Future: Term Life Insurance in Germany Explained

You should consider getting Term Life Insurance in Germany

If you want to protect your family or loved ones, in an affordable manner, then there is no better way than taking out Term Life Insurance. This is especially the case if you are the primary earner and your loved ones depend on the income that you are bringing in. Term Life Insurance in Germany is economical to buy because it covers your life for a fixed term and pays out if you die during the agreed period. An example of this could be for 20 years with a payout of €250,000.

How can you calculate insurance?

This will very naturally vary from person to person and will depend on how much can be afforded and how much is needed in case of death. A wise move when taking out an insurance commitment is to at least know that you are able to cover the first 12 months after your death, and pay any mortgage off. It is possible with term insurance to keep to a particular rate or vary the amount with the cost of inflation. Many people also link it to mortgage repayments and reduce the premiums as the payment on the house decreases and eventually ends.

Term Life Insurance and your tax liability

Under the German taxation system, it is possible to ensure that any payout on death is tax-free. This is done by setting up a contract on the life of a spouse so that it can be made free of inheritance tax (IT). This is paramount for unmarried couples because the IT allowance for them is just €20,000.

How to get your insurance at price that is right for you

When considering taking out Term Life Insurance in Germany, it is important to understand how much you will be paying over the period. In some cases, an offer that seems economical at the time of signing the contract may not be as cheap as you imagined in the long run. There are, however, some insurance firms that allow you to pay a fixed premium over the period. An extra benefit that should be considered includes a terminally ill advance payment. This policy will pay out before death and has many advantages.

You should consider getting Term Life Insurance in Germany

If you want to protect your family or loved ones, in an affordable manner, then there is no better way than taking out Term Life Insurance. This is especially the case if you are the primary earner and your loved ones depend on the income that you are bringing in. Term Life Insurance in Germany is economical to buy because it covers your life for a fixed term and pays out if you die during the agreed period. An example of this could be for 20 years with a payout of €250,000.

How can you calculate insurance?

This will very naturally vary from person to person and will depend on how much can be afforded and how much is needed in case of death. A wise move when taking out an insurance commitment is to at least know that you are able to cover the first 12 months after your death, and pay any mortgage off. It is possible with term insurance to keep to a particular rate or vary the amount with the cost of inflation. Many people also link it to mortgage repayments and reduce the premiums as the payment on the house decreases and eventually ends.

How to get your insurance at price that is right for you

When considering taking out Term Life Insurance in Germany, it is important to understand how much you will be paying over the period. In some cases, an offer that seems economical at the time of signing the contract may not be as cheap as you imagined in the long run. There are, however, some insurance firms that allow you to pay a fixed premium over the period. An extra benefit that should be considered includes a terminally ill advance payment. This policy will pay out before death and has many advantages.

Life Insurance vs. Pension

Do I need a Life Insurance if I have a Pension and/or do I need a Pension when I have a Life Insurance? This is depending on your personal situation and your personal preferences. If you are exploring your options of a worry-free retirement, need any advice on the pension plans that are available in Germany - possibly in addition to a Life Insurance, or simply would like to have a consultation about what makes the most sense in your personal situation, Pensionfriend is an online and independent pension advisor that is experienced in responding to the special needs of expats. All their services and information are available in English. Get in touch with them directly via info@pensionfriend.de or navigate to their website https://Pensionfriend.de.

Demystifying Term Life Insurance in Germany: Top Questions Answered

How does life insurance work in Germany?

Life insurance in Germany operates similarly to other countries. Individuals pay regular premiums to an insurance company, and in return, the insurance company provides a death benefit to the beneficiaries upon the insured person's death. The coverage and terms of the policy vary depending on the specific insurance plan.

Is life insurance a thing in Germany?

Yes, life insurance is available and widely used in Germany. Many individuals choose to purchase life insurance policies to provide financial protection for their loved ones in the event of their death. Life insurance offers peace of mind and ensures that beneficiaries receive a lump sum payment, helping them cover expenses and maintain their financial stability.

What is a 1-year life insurance policy?

A 1-year life insurance policy, also known as a term life insurance policy, provides coverage for a specific period of one year. If the insured person passes away during the policy term, the beneficiaries receive the death benefit. Unlike permanent life insurance policies, term life insurance policies do not accumulate cash value and typically offer lower premiums.

Is life insurance for the living or the dead?

Life insurance is primarily designed to benefit the loved ones left behind after the insured person's death. While the insured person pays the premiums during their lifetime, the policy's main purpose is to provide financial protection and support to the beneficiaries after the insured person's passing. The death benefit serves as a form of financial security for the surviving family members.

How much does life insurance cost in Germany?

The cost of life insurance in Germany varies depending on several factors, including the insured person's age, health condition, coverage amount, and the type of policy selected. Premiums for life insurance policies can range from affordable to more expensive, depending on the level of coverage desired. It's important to compare different insurance providers and policies to find the one that best suits your needs and budget.