life insurance germany
life insurance germany

Life Insurance in Germany Review 2023

A brief comparison of the best life insurance providers in Germany. If you’re short on time, here are the highlights of the top 4 life insurance providers in Germany:

Allianz – An established supplier. The guaranteed amount may be adjusted in the future. Low price increase risk during the contract period. Exceptions to payments are possible in case of unemployment or parental leave.

Die Bayerische – an established provider. Guaranteed price during the term of the contract. Accept prepayment. The guaranteed amount may be adjusted in the future. Cancelable monthly contracts.

Cosmosdirekt – an established provider recommended by “Stiftung Warentest”. One of the cheapest providers. Prices are stable during the contract period. Coverage amount and contract term may be adjusted in the future. Cancelable monthly contracts.

Feather – Support in English and 100% digital. A simple plan. Cancelable monthly contracts.

Read on for more details on life insurance in Germany. Scroll down for a detailed comparison table of the best life insurance providers.


Germany is an insurance country. There are so many types of insurance. Some are very important to have, while others are not so important. If you are not yet familiar with insurance in Germany, you can see an overview here: Insurance in Germany: which one do you need?

Aside from that, you should also read the guide below for information on certain types of insurance:

Unlike health and car insurance, life insurance is not mandatory in Germany. However, for certain people, having it is highly recommended. If your loved ones are financially dependent on you, you will want to protect them. While you can’t prevent them from experiencing the emotional pain of your death, you can help them by removing their financial burden, e.g. not forced to move from their own homes.

Love is not only about taking care of the person you love right now. It’s about being wise and prepared, even planning for the worst-case scenario.

Life insurance is important

In this article, we will discuss why life insurance is so important for certain people. By the way, if you need life insurance, you may also need to make a will in Germany. You can find my story here: Making a will in Germany: why I did it when I was 30 years old

Disclaimer: Please note that this article is intended to give you a brief overview of life insurance in Germany. This blog is not an insurance brokerage platform and is not qualified to provide you with financial advice under German law. If you require further details and specific advice about your personal situation, please refer directly to the insurer’s website or contact an independent financial advisor.

What are the types of life insurance in Germany?

There are many types of life insurance in Germany.

Term life insurance (Risikolebensversicherung)

This is an insurance policy to protect your dependents financially if you die prematurely. You must pay your premium regularly during the term of the contract. If you die during this time, your dependents may receive a sum of money. Term life insurance does not have a savings feature. If you are alive at the end of the contract, you will not receive any money.

Life insurance for life (Kapitallebensversicherung)

Like term life insurance, whole life insurance protects your dependents financially if you die during the term of the contract. The difference is, the premium you pay also has a savings function.

Generally, you have to pay premiums regularly over a long period of time (tens of years). Part of that money will be used as your life-time death bond. The other part will be invested by insurance providers, especially in government or corporate bonds.

Your provider will give you a certain percentage of the guaranteed return. You can even get a higher return if the investment goes well. At the end of the contract, you will receive a share of your savings, plus a guaranteed return (and other extras). If you die early, this amount will be sent to your heirs.

You will learn everything you need to know about investing in Germany in online seminars. If you prefer, you can also book a 1:1 meeting with my financial advisor for a free private consultation.

Swiss Life Select_free English financial online seminar and 1 to 1 consultation with financial advisor

Disclosure: If you click on this link and make a purchase, we will receive a small commission at no additional cost to you.

What is life insurance in Germany?

A term life insurance policy (Risikolebensversicherung) in Germany helps protect your loved ones from financial disaster if you die prematurely. In the event of death, your life insurance will pay a sum of money to the heirs you selected on the previous policy.

This ensures that any loss of income due to your death will be compensated. The money can also be used to cover outstanding loans or mortgages. The beneficiaries are usually your immediate family, such as your spouse or children. But you can also choose someone else as a beneficiary.

A life insurance policy is of no use to you, but it is very beneficial to the people who depend on you financially. It is highly recommended to get life insurance as soon as possible if you have dependents. It’s pretty cheap to get one, especially when you’re young.

How does life insurance work in Germany?

Usually, you will pay regular premiums if you have life insurance in Germany. If you die during the specified contract period, your insurance will pay the agreed amount to your dependents. When you sign your life insurance policy in Germany, you must decide who will be the beneficiaries and how long the contract will last.

Here’s an example:
You agree with your life insurance in Germany that you will pay a premium of 10 Euros per month, for the next 20 years. If you die within the next 20 years, your life insurance will pay out 100,000 Euros to your spouse.

This amount of money can help support your dependents financially, as well as pay off any loans you may have. It provides quick financial assistance to your family in the event of your death, including your funeral expenses. By the way, the average funeral in Germany costs almost 8,000 Euros.

The good thing about life insurance in Germany is that it covers almost all causes of death (except suicide). If you already have a life insurance policy in your home country, be sure to contact your provider to make sure it still pays off while you now live in Germany.

Who needs a life insurance policy in Germany?

Not everyone needs a life insurance policy in Germany. You may not need it if you are alone and have no dependents. Or if you have a lot of savings so your family doesn’t have to worry about losing income.

But if you have people who are financially dependent on your income, then you have to get them. This could be your spouse, your children, or even your parents in your home country (if you support them financially).

Many people start thinking about life insurance when they become parents. Once you become a parent, you should not only think about yourself, but you should also consider your children. You can buy life insurance in Germany only during the period when you need to financially support your family. The price is very cheap, especially if you buy it when you are under 40 years old.

Both my husband and I have purchase our life insurance policies in Germany. We start thinking about it after we had our first child and bought our new house. Before I had life insurance, I was often afraid that my husband would die. With my own income, I will not be able to continue paying our mortgage. We feel at ease after purchasing our life insurance as this issue is now cover.

In general, the following people should consider purchasing life insurance in Germany:

If you are the breadwinner of your family

You must have life insurance to protect your spouse who has a low income or does not work at all. The money receive from your life insurance can ensure that your spouse still has enough money to run the household. This is especially important if you have children. Your spouse may not be able to work full time after her death if she does not have child care benefits.

If you have small children

You should consider having life insurance in Germany to cover you at least until your child is old enough to work and earn their own money. Your life insurance amount can cover expenses like childcare, education, and household expenses.

If you have a loan

You may need to have life insurance to get a mortgage when buying a house in Germany. This is often the case if the mortgage amount is high and you are the only breadwinner in the family. If you die, your life insurance in Germany can help you pay your mortgage.

This is especially important if your family cannot pay the mortgage if you die. Without life insurance, your family may force to move and lose your home. This also applies to other outstanding loans that your family will have to repay even if you die, e.g. student loans.

If your parents depend on you

After moving to Germany, you can still financially support your parents in your home country. In this case, you must also have life insurance in Germany. This is especially important if your parents can’t handle their own living expenses (or nursing home bills) without your support.

If you have a business

Life insurance can help keep your business going if you die. Your business partners can use financial compensation to run the business. Immediate financial assistance can give them time to reorganize your business and find other solutions while you’re gone.

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