How much coverage should I choose?

Finanztip recommends three to five times your gross annual income, with a minimum of around 100,000 EUR. If you have a mortgage, add the remaining debt. Families with small children should aim for the higher end of that range so coverage carries through childhood, not just the next few years.

What does term life insurance cost in Germany?

For a 30-year-old non-smoker with 150,000 EUR coverage and a 20-year term, premiums typically run between roughly 4 and 12 EUR per month, depending on the provider and the health questionnaire. Smokers, older applicants, and those with pre-existing conditions pay noticeably more.

Can I get a policy without a German credit score (Schufa)?

Yes. Term life insurance does not require a Schufa check because you are not borrowing money. What insurers do require is a German registered address (Anmeldung) and a valid residence title (Aufenthaltstitel). Expats with a Blue Card, students, and newly arrived families can all apply.

What is the disclosure obligation under § 19 VVG?

You must answer all health questions truthfully and completely. If you omit or play down an existing condition, the insurer can refuse to pay out and even cancel the contract retroactively. Anything documented at your doctor counts – insurers typically check the medical record after a death claim.

Constant or decreasing sum – which one fits?

A constant policy keeps the sum insured stable across the whole term, which suits family protection. A decreasing policy drops the sum every year and is the cheaper choice when securing a mortgage that shrinks each year. For broad family protection without a mortgage, pick the constant version.

Do I need a medical examination?

Every term life policy in Germany includes some form of health check. Most products use a written questionnaire; for high coverage amounts insurers may request a medical report or blood test. Anyone promising you a policy "without questions" is either much more expensive or marketing in a misleading way.

Will my beneficiaries pay inheritance tax on the payout?

For classic policies the payout counts as part of the estate. § 16 ErbStG sets the allowances: 500,000 EUR for spouses, 400,000 EUR per child, 20,000 EUR for unmarried partners. Couples who are not married often use a cross-policy (Über-Kreuz-Vertrag): each partner insures the other, pays the premium themselves, and receives the payout free of inheritance tax.

Can the payout be sent to a beneficiary abroad?

Yes. German insurers can pay out to beneficiaries in other countries. It may take a few weeks longer because of international transfer checks and apostille requirements. If your beneficiary lives outside Germany, mention this when comparing providers and check whether double taxation treaties apply.

How long should the term be?

Cover the period when other people would be financially exposed if you died. With young children that is usually 20 to 30 years, until the youngest is independent. With a mortgage, match the remaining loan term. A short term is risky because renewing later, with higher age and possible conditions, gets significantly more expensive.

What happens if I outlive the policy?

The contract simply ends and there is no payout. That is the whole point of term life insurance – it is pure risk protection, not a savings product. Low premiums are possible precisely because there is no investment component.

How do I switch from an existing policy to a cheaper one?

Always secure the new policy first and wait until you receive confirmation, then cancel the old one. This avoids a gap in coverage. Mind the standard three-month notice period to the end of the insurance year. Check your current health status – if it is worse than at the original application, switching can backfire because the new policy will be more expensive.

Family in Germany comparing term life insurance options

Plain-English guide for expats and families in Germany

Term Life Insurance in Germany 2026 Compare for Expats and Families

Term life insurance (German: Risikolebensversicherung) pays an agreed sum to your loved ones if you die during the policy term. For a 30-year-old non-smoker with 150,000 EUR coverage and a 20-year term, premiums typically sit between roughly 4 and 12 EUR a month. Comparing is worth it because identical coverage costs different amounts depending on the insurer and your health questionnaire.

Last updated: 20 May 2026 meinetarife24 Editorial Team reviewed against GDV, BaFin and Finanztip

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Key Takeaways

Who needs it: parents with children, couples sharing a mortgage, sole earners, unmarried partners with shared expenses.
Coverage amount: 3 to 5 times your gross annual income (Finanztip guidance, October 2025); add the mortgage balance if you own property.
Premium range: young non-smokers commonly pay 4 to 12 EUR a month for 150,000 EUR coverage. Smokers and older applicants pay more.
Disclosure (§ 19 VVG): answer every health question truthfully. Omitting a condition can void the payout.
Expat note: no Schufa needed; just a German registered address and valid residence title.

What term life insurance covers in Germany

A German term life policy (Risikolebensversicherung) is a pure death-benefit product. It pays your named beneficiaries a fixed sum if you die during the agreed term. If you outlive the term, the contract ends without a payout. There is no investment component, which is exactly why the premiums are so low.

All German term life insurers are supervised by the Federal Financial Supervisory Authority (BaFin) under the EU Solvency II framework. Mortality assumptions used to calculate premiums come from the mortality tables published by the German Insurance Association (Gesamtverband der Deutschen Versicherungswirtschaft, GDV). Since the European Court of Justice ruling of 1 March 2011 (Case C-236/09), tariffs in Germany are gender-neutral: men and women pay the same premium for the same conditions.

Do not confuse term life insurance with whole-of-life or capital life insurance. The latter mixes a death benefit with a savings component and costs significantly more. For pure family protection, term life is the more efficient choice in almost every case.

Who really needs term life insurance?

Term life insurance is not a fit for everyone. It earns its keep when other people depend on your income or when a debt would become a burden if you were no longer there to service it.

Families with children

If one parent dies, the other should still be able to pay rent or mortgage, child care and daily expenses without slashing the family standard of living. A constant-sum policy is usually the right choice here.

Mortgage holders

German banks often require a term life policy as collateral for a property loan. A decreasing-sum policy mirrors the falling loan balance and is the cheapest way to satisfy the bank without overpaying.

Unmarried couples

Without marriage there is no spousal inheritance allowance. A cross-policy (Über-Kreuz-Vertrag) ensures the payout reaches the partner tax-free and keeps shared rent or loan obligations manageable.

Expats and newcomers

If you have recently moved to Germany and want to protect your family, you can buy a term life policy without German credit history. A residence title and a registered address are enough. Coverage applies worldwide as long as you avoid predefined high-risk regions.

Single households with no debt and no dependants generally do not need term life insurance, because a solid liability and disability policy gives more value here.

Coverage amount: how much protection is enough

The most widely cited German guidance, including Finanztip's October 2025 update, is three to five times your gross annual income, with a floor of around 100,000 EUR. If you have a mortgage, add the remaining balance on top. Families with small children should plan towards the upper end of the range so the cover lasts until the kids leave the home.

Situation	Suggested coverage	Typical term
Couple, no children, no loans	3x gross annual income, min 100,000 EUR	10 to 15 years
Family with children (renting)	5x gross annual income	20 to 25 years
Family with mortgage	Remaining loan + 3x gross annual income	Remaining loan term
Sole earner, young kids	5x gross annual income, min 250,000 EUR	25 to 30 years
Self-employed with business loans	Remaining debt + 3x annual profit	Remaining loan term

Reference points based on Finanztip (06 Oct 2025) and Verbraucherzentrale guidance. Actual premiums depend on the live comparison.

What drives the premium

Insurers price term life using GDV mortality tables and then layer on risk factors. Buying young, healthy and with no hazardous hobbies gives the cheapest result. The five biggest levers in practice:

Age at application: a 25-year-old pays a fraction of what a 45-year-old pays for the same coverage. Locking in early protects your premium for the entire term.
Smoker status: smokers commonly pay around double. After at least 12 months smoke-free you can apply for the non-smoker tariff with a new health review.
Occupation and hobbies: construction work, work at heights, and risk sports such as diving, parachuting and climbing lead to surcharges or exclusions.
Pre-existing conditions: high blood pressure, diabetes, and mental health diagnoses matter. Never omit them, because § 19 VVG can void the policy.
Term and coverage amount: longer terms and higher sums cost more but are usually cheaper than buying again later at a higher age.

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Constant, decreasing or cross-policy choosing the right structure

Constant policy

Coverage stays the same across the full term.

+ Stable family protection
+ Predictable planning
- Slightly higher premium

Decreasing policy

Coverage shrinks each year alongside a mortgage balance.

+ Cheapest premium
+ Fits annuity mortgages
- Less flexible if life changes

Cross-policy (Über-Kreuz)

Two contracts where each partner insures the other.

+ Avoids inheritance tax for unmarried couples
+ Both partners protected
- Higher total cost than a joint contract

The disclosure rule (§ 19 VVG) is the biggest pitfall

The pre-contractual disclosure obligation under § 19 of the German Insurance Contract Act (VVG) is the single biggest risk in term life insurance. Not the tariff, not the coverage, but the accuracy of the health questionnaire. If you omit or soften a condition, the insurer can refuse the payout or unwind the contract retroactively. The Verbraucherzentrale therefore recommends listing every diagnosis from the past five to ten years (depending on the question wording) and, when in doubt, asking your doctor for a written summary.

Practical tip: request your electronic patient record or a recent treatment summary before submitting the application. You then answer based on real records rather than memory, which dramatically reduces the chance of losing coverage years later because of a single forgotten note in your medical file.

Tax basics beneficiaries should understand

Premiums are technically deductible under § 10 EStG as "other provision expenses" (sonstige Vorsorgeaufwendungen). In practice, most employees in Germany already exhaust the annual allowance with public health and long-term care contributions, so the term life premium adds little to no actual tax benefit. The more interesting tax question shows up at payout.

When the policyholder dies and a beneficiary receives the sum insured, the personal inheritance allowances of § 16 ErbStG apply: 500,000 EUR for spouses, 400,000 EUR per child, 100,000 EUR for parents, and only 20,000 EUR for unrelated beneficiaries, including unmarried partners. Amounts above the allowance are taxed as inheritance.

This is where the cross-policy (Über-Kreuz-Vertrag) earns its keep: each partner buys a policy on the other's life, pays the premiums personally, and is the beneficiary of their own contract. Tax authorities treat the payout as the partner's own insurance claim, not as inheritance. For unmarried and international couples, this structure is close to mandatory.

Term life insurance for newcomers and expats

The most common worry among expats is whether they can even buy a German policy. The short answer is yes, in nearly every situation. You need a German registered address (Anmeldung) and a valid residence title or settlement permit. A Schufa score is not required because no credit is being granted.

Three practical points to keep in mind. First, the health questionnaire is in German. Take your time or have someone translate; a mistranslation can become a § 19 VVG issue later. Second, if your residence permit is time-limited, insurers may request additional documents, which is not a deal breaker but slows the process. Third, check what happens when the beneficiary lives abroad: the payout works, but cross-border transfers and apostille requirements can add a few weeks.

For families with an international footprint, inheritance tax is the trickier topic. If the beneficiary is a long-term resident outside Germany, double-taxation issues can appear. A tax adviser experienced in cross-border estate planning typically saves more than the annual premium of the policy itself.

Frequently asked questions

It makes sense if other people depend on your income or if you carry a mortgage. Typical groups are families with children, sole earners, unmarried couples sharing rent or debt, and freelancers with business loans. If you are single without dependants or debt, you usually do not need it.

Related guides on meinetarife24.de

Important notice: this guide is no substitute for individual advice from a licensed insurance broker or tax adviser. Premium ranges reflect current market values; the binding figure for you results from the live comparison. Sources: GDV mortality tables and statistics, BaFin insurance supervision (Solvency II), Finanztip term life insurance review of 06 October 2025, Verbraucherzentrale guidance on § 19 VVG, § 16 ErbStG and § 10 EStG as in force in 2026.