Term life insurance in Germany

Term life insurance is worth considering if other people depend financially on you.

This may include your partner, children, parents or other family members in India. It can also make sense if you have a mortgage, loans or other financial commitments your family would need to manage without your income.

If nobody depends financially on you, you may not need term life insurance.

No. Term life insurance is not legally mandatory in Germany.

It is voluntary protection for people who want to provide financial security for their family or other dependents if they die.

A lender may, however, consider life insurance when financing a property depending on the individual financing arrangement.

Your cover amount should reflect the financial gap your death would leave behind.

A useful calculation can include:

• Income your family would need to replace
• Mortgage and other debts
• Children’s future costs
• Financial support for parents or family
• Existing savings and life insurance

There is no single correct amount for everyone. We calculate a suitable starting point based on your individual situation.

The term should generally cover the years during which your family is financially dependent on you.

For example, this could be until your mortgage is substantially repaid, your children become financially independent or your partner no longer depends on your income.

The right term therefore depends on what you are trying to protect.

The price depends on factors including your age, health, cover amount, term, occupation and lifestyle.

Smoking status can also have a significant effect on the premium.

Applying while you are younger and healthy can make long-term cover more affordable, but the exact price depends on the insurer’s assessment.

Term life insurance and occupational disability insurance (Berufsunfähigkeitsversicherung or BU) protect against different risks.

Term life insurance pays an agreed lump sum if you die during the insured term.

BU can provide a monthly income if illness or injury prevents you from working according to the policy conditions.

If your family depends on your income, both risks may be relevant.

Yes. German term life insurance can generally be structured with beneficiaries who live outside Germany, including family members in India.

The beneficiary clause should clearly identify who is intended to receive the payout.

When beneficiaries live abroad, the insurer may require additional identification, banking or other documentation when processing a claim.

A payout can generally be made to an eligible beneficiary living in India, subject to the insurer’s requirements and applicable banking, identification and legal procedures.

If supporting family in India is one of the reasons you are taking out the policy, tell us from the start so the beneficiary setup can be considered accordingly.

Not automatically.

German inheritance tax can depend on factors including who owns the policy, who is insured, who receives the payout and the relationship between the people involved.

Different tax-free allowances can also apply depending on the relationship between the beneficiary and the deceased.

If Germany and India are both involved, the individual tax situation should be checked rather than assuming the payout will always be tax-free.

You do not automatically need another policy just because you now live in Germany.

We first look at your existing Indian cover, the amount insured, the term, your current income and the people who depend on you.

If your existing policy still provides suitable protection for your situation, additional German cover may not be necessary.

Your medical history can affect whether an insurer accepts your application and on what terms.

Depending on the condition and insurer, this could result in standard acceptance, a higher premium or a declined application.

Where appropriate, we can use an anonymous risk pre-check (anonyme Risikovoranfrage) to assess potential options before making a formal application.

Many German term life insurance plans can continue after you move abroad, but this should not be assumed for every plan or every destination.

If returning to India is a realistic possibility, we check the relevant conditions when comparing plans.

You should also inform the insurer about changes of address or residence where required by the policy.

Many plans offer options to increase the insured amount after certain life events without going through a completely new health assessment.

Qualifying events can include marriage, the birth or adoption of a child, buying property or a significant change in income.

The events, deadlines and maximum increases vary between plans, so flexibility is worth comparing before you choose.

If you are still alive when the agreed term ends, the insurance normally ends without a payout.

That is intentional: term life insurance is designed to protect against the financial consequences of death during a defined period, not to build an investment.

Ideally, by the end of the term your mortgage is lower, your savings are higher and the people you originally wanted to protect are less dependent on your income.