Life insurance in Germany: The 2026 expat guide

Term life insurance in Germany costs most healthy expats around €10–€30 a month for €250,000–€500,000 of cover, and it matters more here than you might expect. If you've lived in Germany fewer than five years, the state survivor pension (Witwenrente) usually pays your family nothing, so private life insurance is often their only safety net from day one.

This guide covers life insurance in Germany for expats and internationals. You’ll learn:

• What term life insurance is (Risikolebensversicherung, RLV)
• How much it costs in 2026
• How much cover you need
• Tax and inheritance rules (though this isn’t legal advice)
• And what to look for in a contract.

Brought to you by Feather, licensed insurance broker helping expats find and manage cover in English across Germany, Europe and beyond.

Life insurance in Germany: At a glance

• What it costs: Term life runs roughly €4–€140 a month depending on age, coverage, and health (about €10–€30/month for €250,000≈ of cover for a healthy 30-something).
• How much cover: A common rule of thumb is 3–5× your annual net income, plus debts and funeral costs. For a typical Berlin family with two kids, that's around €350,000.
• The expat catch: Germany's state survivor pension needs five years of contributions before it pays out, so new arrivals get nothing from the state.
• Tax on premiums: Term life is exempt from the 19% insurance tax (Versicherungsteuer), so your quoted premium is the full cost.
• Tax on payouts: With a named beneficiary (Bezugsrecht), the payout goes straight to your family, usually well inside the €500,000 (spouse) or €400,000 (child) inheritance-tax allowance, so most families pay zero.

What is life insurance in Germany?

Life insurance in Germany (Lebensversicherung) is a contract with an insurer: you pay monthly premiums, and if you die during the policy term, the insurer pays a lump sum (the death benefit) to your chosen beneficiaries. It gives your family time to adjust without immediate financial pressure.

That payout can cover:

• Outstanding debts: mortgage, personal loans, credit cards
• Housing costs: your family can stay in their home
• Daily living expenses: groceries, childcare, school fees
• Funeral costs: around €7,000–€8,000 on average in Germany

Germany is one of Europe's largest life insurance markets. In 2025, German life insurers held 82.8 million contracts (down 1.7%) and collected €99.4 billion in premiums (up 5.1%), according to the GDV (Gesamtverband der Deutschen Versicherungswirtschaft). For more on the market, see our breakdown of life insurance statistics in Germany.

Is life insurance mandatory in Germany?

No. Life insurance is not legally required in Germany for anyone. It's voluntary. But a mortgage lender may ask for cover before approving a home loan, and it's strongly advisable if anyone depends on your income, since the state survivor pension often pays little or nothing in your first years here.

Is life insurance worth it in Germany?

For most expats with dependents, yes. If a partner, child, or mortgage relies on your income, term life insurance in Germany is worth it (a €250,000–€500,000 policy costs just €10–€30 a month for a healthy 30-something). If nobody depends on your income and your savings already cover your debts, you probably don't need it.

Here's a quick look at what term life costs in 2026 for a non-smoker in an office job. The full breakdown, including smokers and older ages, is further down.

Do expats need life insurance more than German nationals?

Often, yes. German nationals can usually fall back on the statutory survivor pension, but expats frequently can't. It requires five years of contributions and pays only 25–55% of the deceased's pension. In your early years in Germany, private term life is realistically your family's only safety net. Here's why the gaps in the state system matter so much.

The statutory survivor pension (Witwenrente and Waisenrente)

When a German resident dies, their surviving spouse and children may be entitled to a survivor pension (Hinterbliebenenrente) from the Deutsche Rentenversicherung (DRV). There are two types:

• Kleine Witwenrente (small survivor pension): 25% of the deceased's pension entitlement, limited to 24 months. This is what most younger surviving spouses receive.
• Große Witwenrente (large survivor pension): 55% of the deceased's pension entitlement (60% under pre-2002 "old law"), paid indefinitely; but only if the surviving spouse has reached the age threshold, has a minor child, or has their own disability.

Children receive Waisenrente (orphan's pension): 10% for a half-orphan, 20% for a full orphan (Deutsche Rentenversicherung).

As of 1 July 2026, the age threshold for the große Witwenrente is 46 years and 6 months, rising two months a year to 47 by 2029. On the same date, pensions rose 4.24%, lifting the aktueller Rentenwert to €42.52, and the survivor income allowance (Einkommensfreibetrag) rose to €1,122.53 per month, plus €238.11 for each dependent child (Deutsche Rentenversicherung). But these numbers only matter if you actually qualify.

Do expats qualify for the German state survivor pension?

Not for the first five years. To receive any German survivor pension (Witwenrente), the deceased must have contributed to the Deutsche Rentenversicherung for at least five years; the minimum insurance period (Mindestversicherungszeit). Expats below that threshold, and most non-contributing self-employed people, leave their families with zero state cover.

What this means in practice:

• Year 0–5 of residency: Your family gets zero from the German state if you die. Private term life insurance is their entire safety net.
• Year 5+: The state pension starts to kick in, but at low levels. If you've contributed for only 5–10 years, the Witwenrente will be a few hundred euros a month at best.

This is exactly why private term life belongs on your day-one checklist, alongside health insurance and a bank account. For more on how the German pension system works and how to maximize your German pension, see our dedicated guides. Also worth reading: common German pension myths.

What cover might you already have?

Before you buy a new policy, check whether you already have some life cover. Many people do (through an employer or an existing home-country policy) and it changes how much you need.

• Employer death-in-service benefit (betriebliche Hinterbliebenenversorgung): Many German employers offer a free or subsidized death benefit as part of the company pension scheme (betriebliche Altersversorgung, bAV). Ask HR.
• Group accident insurance (Unfallversicherung): Some employers include accidental death cover. It won't cover illness-related death, but it's worth knowing about.
• Home-country policies: If you have an existing whole or term life policy from your home country, check whether it pays out while you're a German resident.
• Mortgage life insurance: If you took out a German mortgage, your bank may have bundled decreasing term life cover.

Types of life insurance available in Germany

Term life insurance (Risikolebensversicherung)

Term life insurance runs for a set period (typically 10, 15, 20, 25, or 30 years) and pays out only if you die within that term. If you survive the term, the policy simply ends with no payout. Because it has no savings component, term life is the cheapest type of life insurance and the right choice for most families.

Within term life, you can choose between three structures:

1. Level term (konstante Todesfallsumme): The death benefit stays the same throughout the term. The most common and straightforward option.
2. Decreasing term (fallende Todesfallsumme): The death benefit falls over time, typically matching a repayment mortgage balance. Cheaper than level term because the insurer's risk drops each year.
3. Increasing term (steigende Todesfallsumme): The death benefit rises over time to keep pace with inflation. More expensive, but protects against rising living costs.

Whole life insurance (Kapitallebensversicherung)

Whole life insurance covers you for your entire life (as long as you keep paying premiums, a payout is guaranteed) and it builds a cash value you can borrow against or withdraw. It's significantly more expensive than term life, and it's been losing popularity in Germany because:

• The statutory maximum guaranteed rate (Höchstrechnungszins) is 1.0% for 2026 — raised from 0.25% in January 2025, its first increase in 30 years, but still low (Deutsche Aktuarvereinigung).
• The fees embedded in whole life contracts eat into returns.
• Most financial advisors (including Finanztip and Stiftung Warentest) recommend "buy term and invest the difference".

Whole life still suits a narrow group: people who want a guaranteed payout for inheritance planning regardless of when they die, and who value simplicity over investment returns.

Unit-linked life insurance (Fondsgebundene Lebensversicherung)

Unit-linked life insurance is a hybrid product where the savings component is invested in funds, so the death benefit and cash value depend on fund performance. It's an investment product with insurance attached; not a straightforward protection product.

Who needs life insurance in Germany?

You most likely need life insurance in Germany if you're a parent, a primary earner, a homeowner with a mortgage, an expat in your first five years, or self-employed. You probably don't need it if you have no dependents and enough assets to cover your debts and final expenses. Here's how that breaks down.

Parents and primary earners

If your partner and children depend on your income, term life insurance is essential. The payout replaces your income during the years your family needs it most; while children are young, school and university fees are due, and your partner may not be able to work full-time.

Homeowners with a mortgage

If you die, can your family keep paying the mortgage? A decreasing term policy matched to your mortgage balance ensures they can stay in their home.

New expats in their first 5 years in Germany

New expats have no German state survivor pension until they've contributed to the Deutsche Rentenversicherung for at least five years. During this window, private life insurance is the only thing standing between your family and zero income.

Freelancers and self-employed

If you're self-employed in Germany, you likely have no employer death-in-service benefit, no employer accident insurance, and possibly no DRV contributions at all, so life insurance matters even more. The §10 EStG premium deduction can also work in your favor: freelancers often have room under the €2,800 cap because they pay private health insurance separately.

Families with non-German heirs (inheritance tax planning)

If your beneficiaries live outside Germany or aren't your spouse or children, the inheritance-tax (Erbschaftsteuer) allowances are much lower (just €20,000 for unrelated people). Naming a beneficiary directly on the policy (a Bezugsrecht) sends the payout straight to them, bypassing the estate, so it stays within their allowance instead of triggering a tax bill. If you're bringing family to Germany — via a Germany spouse visa or by bringing your parents — life insurance becomes part of the family-arrival conversation.

Who probably doesn't need life insurance

• Single individuals with no dependents: If nobody relies on your income, there's little reason to carry life insurance.
• People with a high-earning, self-sufficient partner: If your partner's income alone covers all family expenses and debts, the need is lower, though many families still buy a policy for the extra security.

How much does life insurance cost in Germany?

Term life insurance in Germany costs most healthy adults around €10–€30 a month, but the price varies enormously with your age, health, coverage amount, term length, and which insurer you choose. The same person buying the same cover can pay up to 4× more at one insurer than another, which makes comparing quotes the single most valuable thing you can do.

Here's what you can expect to pay per month as a non-smoker in an office job — the cheapest-to-most-expensive range across major insurers:

Ranges reflect cheapest-to-most-expensive tariffs across major German insurers, based on Stiftung Warentest and Finanztip comparison data. Actual quotes depend on health, occupation, and insurer.

What influences your premium?

Insurers calculate your term life premium based on:

1. Age: Younger applicants pay less. Every year you delay costs you money.
2. Smoking status: Smokers pay 2–3× more than non-smokers.
3. Health and pre-existing conditions: If you have pre-existing conditions, premiums will be higher; or the insurer may exclude certain causes of death.
4. Occupation: High-risk jobs (construction, firefighting, professional sports) raise premiums.
5. Coverage amount and term length: More cover and longer terms cost more.
6. Hobbies: Skydiving, motorsports, and other high-risk hobbies can add to your premium.
7. BMI and family medical history: Some insurers factor these in.

How can you lower your premium?

• Apply young. Lock in lower rates before age-related increases kick in.
• Quit smoking. After 12 months smoke-free, most insurers reclassify you as a non-smoker on request.
• Compare quotes. Given the 4× spread, comparing at least 3–5 insurers is non-negotiable.
• Choose the right term. Don't buy a 30-year policy if your kids will be independent in 20.
• Stay healthy. If your health improves after purchase, request a reassessment. Good news: your premiums can't rise if your health worsens later.

How much coverage (death benefit) do you need?

Most expat families need a death benefit of around 3–5× annual net income, plus outstanding debts and funeral costs. For a typical family in Berlin, that works out to roughly €350,000. The idea is to match your family's actual financial needs, not a round number picked at random.

The coverage formula

Use this as a starting point:

Funeral costs + total debts + (annual mortgage/rent × years to cover) + (annual net income × years to cover)

A common recommendation is to cover 3–5 years of expenses, giving your family time to adjust.

Example: Expat family in Berlin

Marco and Elena, both 34, live in Berlin with two children (ages 3 and 5). Marco earns €75,000 gross (about €3,800 net a month), Elena works part-time, and they owe €320,000 on their apartment.

Applying the coverage formula (funeral costs + total debts + housing × years + net income × years):

• Funeral costs: €5,000
• Outstanding debts (credit cards, car loan): €8,000
• Housing (€1,800/mo × 60 months): €108,000
• Income replacement (€3,800/mo × 60 months): €228,000
• Total: ~€349,000 → round to €350,000

Price check: a €350,000 / 25-year term life policy for a healthy 34-year-old non-smoker costs roughly €12–€30 a month depending on the insurer.

Is life insurance tax-deductible in Germany?

Term life premiums are technically deductible in Germany as sonstige Vorsorgeaufwendungen under §10 EStG, but most employees see no benefit: the €1,900 annual cap is usually already used up by health and long-term-care contributions. Freelancers and the self-employed, who often pay their own health costs, are more likely to have room.

The €1,900 / €2,800 cap under §10 (1) Nr. 3a EStG

The annual deduction cap under §10 EStG is €1,900 for people with subsidized health cover (employees, civil servants, pensioners) and €2,800 for those paying their own health costs, such as the self-employed. The catch: this cap is shared with your health insurance (KV) and long-term-care insurance (PV) premiums. For most employees, KV and PV alone already exceed €1,900, so the life insurance deduction adds nothing.

Freelancers and self-employed expats often have room under the cap. If that's you, it's worth running the numbers with your tax advisor.

Term life is exempt from the 19% Versicherungsteuer

Term life insurance is exempt from Germany's 19% insurance tax (Versicherungsteuer) under the VersStG; the 19% rate applies to property and accident cover, not life policies. Unlike liability, household, or car insurance, your quoted premium is the full cost, with nothing added on top. It's one reason term life is among the cheapest insurance products per euro of coverage in Germany.

Is a German life insurance payout subject to inheritance tax?

A life insurance payout can be subject to German inheritance tax (Erbschaftsteuer), but generous allowances mean spouses and children usually pay nothing. A spouse has a €500,000 allowance plus up to €256,000 more; each child has €400,000. Naming a beneficiary (Bezugsrecht) sends the payout directly to them, bypassing the estate. This is the biggest tax-planning reason to buy life insurance in Germany.

Freibeträge: Tax-free family inheritance

Under §16 ErbStG, everyone who inherits has a tax-free allowance (Freibetrag) based on their relationship to the deceased:

These allowances reset every 10 years and cover the total value of everything inherited: property, savings, investments, and life insurance payouts that flow through the estate.

Versorgungsfreibetrag: Allowance for dependents

On top of the general allowance, surviving spouses and children get an additional Versorgungsfreibetrag under §17 ErbStG: €256,000 for a spouse, and up to €52,000 for children (decreasing with age; highest for the youngest). This means a surviving spouse can effectively receive up to €756,000 (€500,000 + €256,000) before any inheritance tax applies.

Bezugsrecht (beneficiary designation)

If you name your beneficiary directly on the policy using a Bezugsrecht (beneficiary designation), the payout goes directly to them; it never enters your estate. That matters because:

• The payout isn't subject to probate delays.
• It can't be claimed by creditors of the estate.
• It still counts toward the beneficiary's Freibetrag, but since most family payouts fall well within the €500k/€400k allowances, the effective inheritance tax is zero.

There are two types of Bezugsrecht:

• Widerrufliches Bezugsrecht (revocable): The default. You can change the beneficiary anytime until the payout event. This is what most people use.
• Unwiderrufliches Bezugsrecht (irrevocable): The beneficiary is locked in and can't be changed without their consent. Used in divorce settlements, mortgage protection, and company life policies.

Example: €500k policy, married, 2 kids

Anna, 35, is married with two children. She takes out a €500,000 term life policy and names her husband as the Bezugsberechtigter (beneficiary) via a revocable Bezugsrecht. If Anna dies:

1. Her husband receives the €500,000 directly, bypassing the estate.
2. His Freibetrag: €500,000 (spouse allowance under §16 ErbStG).
3. His Versorgungsfreibetrag: €256,000 (under §17 ErbStG).
4. Total tax-free capacity: €756,000.
5. €500,000 payout vs. €756,000 allowance → zero inheritance tax.

For anyone whose beneficiary falls outside the spouse/child relationship — say an unmarried partner with only a €20,000 allowance — the Bezugsrecht structure matters even more. It's the difference between a tax-free payout and a large tax bill.

Please note this is not legal or tax advice but an informational guide. The exact numbers will vary depending on your situation. Consider talking to a lawyer or a financial planner.

What to look for in a German term life contract

Not all term life policies are equal. Beyond premium and coverage amount, these contract features separate a good policy from a mediocre one; all apply specifically to term life insurance (RLV).

Nachversicherungsgarantie (guaranteed top-up without re-underwriting)

The most important feature for young applicants. A Nachversicherungsgarantie lets you increase your coverage without new health questions when major life events happen (marriage, a new baby, a mortgage, or a big salary rise). So you can start with a lower amount today and scale up as your life changes, without worrying about health issues that develop in the meantime.

Verlängerungs- und Umtauschoption (extension and conversion)

Some policies let you extend the term or convert your term life policy into a different product (such as whole life) at the end of the original term. Again, without new medical underwriting. Valuable if your protection needs outlast your original term.

Dynamische Anpassung (annual inflation increase)

An optional feature that automatically raises your coverage (and premium) by a fixed percentage each year (typically 2–3%) to keep pace with inflation. You can usually skip individual annual increases without losing the feature.

Weltweite Geltung (worldwide validity)

Critical for expats: make sure your policy is valid worldwide, not just within Germany or the EU. Most reputable German term life policies include global coverage by default, but check the fine print.

Honest answers on the Gesundheitsprüfung (health questionnaire)

When you apply, you'll fill out a Gesundheitsfragebogen (health questionnaire). Answer every question truthfully. If the insurer discovers a misrepresentation after your death (even an innocent one), they can void the policy under the pre-contractual duty of disclosure (vorvertragliche Anzeigepflicht, §§19–22 VVG), which is strictly enforced. The questions usually cover the last 5–10 years of medical history. If in doubt about whether something is relevant, disclose it.

How to apply for life insurance in Germany

The application process

1. Compare quotes: from multiple insurers (use an English-speaking broker or comparison tool).
2. Fill out the application: Personal details, health questionnaire, coverage amount, term length, beneficiary.
3. Submit it: most modern insurers accept digital applications.
4. Review your policy documents: check the Versicherungsschein (policy certificate) and confirm your beneficiary designation.
5. Set up premium payments: usually monthly via SEPA direct debit.

You can apply for our life insurance policy entirely in English, online, in about 10 minutes.

When is a medical exam required?

Most term life policies in Germany need only a health questionnaire; no physical exam. A medical exam is typically required only for coverage above €300,000–€500,000 (the threshold varies by insurer), for applicants whose questionnaire reveals health concerns, or for applicants over a certain age (usually 45–50).

What happens if you don't disclose?

Under German insurance contract law (VVG), you have a pre-contractual duty of disclosure. If you fail to disclose a relevant medical condition and the insurer discovers it after a claim:

• Within the first 5 years, the insurer can contest the policy and refuse to pay.
• If the misrepresentation was intentional, the insurer can contest even after 5 years.
• In extreme cases, the insurer can void the policy retroactively.

The lesson: full honesty on the health questionnaire protects your family more than any coverage amount.

Which life insurance companies should you consider?

The biggest providers by brand

Germany has dozens of life insurers. The largest by brand recognition include Allianz, AXA, and Generali. But brand size doesn't necessarily mean the best price or contract terms for term life.

Stiftung Warentest and Finanztip Testsieger

Germany's most trusted independent consumer organizations — Stiftung Warentest and Finanztip — consistently rank these insurers at the top for term life price-quality: Hannoversche, Europa, CosmosDirekt, Ergo (Risk Life), Zurich (Deutscher Herold), and Dialog.

English-speaking insurers

If you want to manage your life insurance entirely in English, these are the main options in the German market:

What happens to your policy if you leave Germany?

Your German term life policy usually stays valid if you move abroad. German insurance contract law (VVG) governs it regardless of where you live, so relocating doesn't automatically cancel your cover. A few practical points matter, though:

• Keep a SEPA-capable bank account. Most insurers need one for premium payments. If you close your German account, arrange an alternative; otherwise, the policy may lapse.
• German law governs the payout. If you die abroad, the payout is still processed under German law. Your beneficiaries will need a death certificate (apostilled or officially translated) and the policy documents.
• Currency risk. The payout is in euros. If your family lives in a non-euro country, they'll convert at the prevailing exchange rate.
• Advisory obligations end. The broker advisory duty (Beratungspflicht, under IDD/VVG) applies only while you're a German resident. Once you leave, your broker isn't required to proactively review your policy.

For more on leaving, see our ultimate checklist for leaving and returning to Germany and our guide to getting your German pension back.

Should you get life insurance? A quick decision framework

For most expats with dependents in Germany, yes. Here's a quick way to decide.

You almost certainly need it if:

• You have children or a partner who depends on your income.
• You have a mortgage.
• You've been in Germany fewer than 5 years (no Witwenrente).
• You're self-employed with no employer death benefit.

You probably don't need it if:

• Nobody depends on your income.
• You have enough liquid assets to cover all debts and support your family for 5+ years.
• Your partner earns enough independently to maintain the family's lifestyle.

The cost-benefit math is heavily in your favor: €10–€30 a month buys €250,000–€500,000 of coverage for a healthy 30-something.