Life insurance in Belgium (assurance vie/levensverzekering)

When you move to Belgium and start planning your family’s financial future, one question eventually comes up:

Should you get life insurance?

For many people, it feels complicated, full of jargon, and easy to postpone.

But wait.

There’s good news:

With the right guidance, life insurance in Belgium can become a straightforward way to protect your loved ones and even grow your savings for the future.

It doesn’t have to be overwhelming or expensive.

The truth is that whether you’re a parent, a homeowner, or an expat navigating Belgian bureaucracy, understanding your options now can make a world of difference later.

In this post, you’ll learn:

What life insurance in Belgium is and who needs it

How policies actually work and what they cover

The main types of contracts (and which one fits you)

How much coverage you should get

Let’s get started.

What is Belgian life insurance?

In Belgium, life insurance is known as “assurance vie” in French and “levensverzekering” in Dutch.

At its core, it is a contract between an individual and an insurance company, where the insurance company promises to pay a predetermined amount in the event of the policyholder’s death to their chosen beneficiaries.

The primary goal is to either provide financial protection for loved ones or serve as a savings tool for the future.

With $831 billion paid out to beneficiaries in 2023, life insurance is one of the most popular insurance products worldwide.

All life insurance products in Belgium are supervised by the Financial Services and Markets Authority (FSMA)

Who needs life insurance in Belgium?

Life insurance in Belgium is not a requirement for anyone.

But it can be a powerful tool for most households.

The decision depends on your personal circumstances, financial responsibilities, and long-term goals, but here’s a general overview of who tends to benefit the most:

Families with children

Parents often benefit from life insurance because it provides financial security for everyday living expenses, school fees, and even future savings for their children.

It ensures that children are financially supported in the event of a parent’s passing.

Homeowners

Owning property comes with long-term debt. A life insurance payout can protect dependents by covering mortgage installments or outstanding loans.

Caregivers and care-receivers

Those providing care for relatives can guarantee uninterrupted support through a policy.

On the other hand, older adults sometimes use life insurance as a final gesture to financially express their gratitude to their caregivers.

High-net-worth families

Large estates may face heavy taxes.

Life insurance can help offset these costs, allowing heirs to inherit a larger portion of the family’s wealth.

Business owners

Companies that rely on specific individuals may use “key person insurance” to protect operations if a vital employee or partner passes away.

Married retirees

Pensioners can use life insurance to replace lost pension income, providing surviving spouses with greater financial stability.

Who might not need life insurance?

Not every situation calls for a policy.

Single individuals without dependents typically don’t need coverage. Similarly, if a partner has a strong income and is financially prepared to support the household, life insurance may not be essential.

How does life insurance work in Belgium?

Choosing a policy: Life insurance always starts with signing a contract with an insurer. You’ll get to choose the coverage amount (the sum paid out upon death) and name the beneficiaries who will receive the funds.
Paying premiums: To keep the plan active, the insured must pay premiums regularly. Costs vary depending on coverage and risk factors (age, health, etc.).
The insured event: If the insured person passes away while the contract is valid, the insurance company activates the policy guarantee.
Payout: The insurer then transfers the agreed payout directly to the designated beneficiaries. These are often close family members, dependents, or any individuals named in the contract.
How the payout can be used: The lump sum provides financial protection and can be used in many ways:
a. Covering daily living expenses and maintaining household stability
b. Supporting dependents such as children or a spouse
c. Repaying outstanding loans or mortgages
d. Handling immediate costs like funeral expenses
e. Ensuring both short-term and long-term financial security
Taxes: In Belgium, life insurance is subject to a specific tax framework that interacts with inheritance rules. Whether the payout is included in the deceased’s estate for succession tax purposes depends on several factors (who owns the policy, who is designated as beneficiary, which region (Flanders, Brussels, Wallonia) the deceased lived in, etc.). But, generally, life insurance can reduce inheritance taxation.

What type of life insurance is right for you?

Life insurance in Belgium usually comes in two main forms. Each works differently and is better suited to different needs.

Let’s take a closer look at them:

Pure risk, or term life insurance

Pure risk policies are protection-only. This means:

They pay out only if the insured person dies during the agreed period.
If you outlive the contract, there’s no payout.

A common use case is when you take out a mortgage loan. Banks often require borrowers to get this type of policy.

That way, if something happens to you, your family won’t be left with debt; the loan will be paid off.

Mixed, savings-linked products

These policies combine protection against death with savings or investments. You stay insured, but there’s also a payout even if you survive the policy term.

Depending on the contract, the money can act as:

A form of retirement income
A way to leave an inheritance
An investment in financial markets

For example, you pay monthly premiums into a mixed policy for 30 years. If you live until the end, you get a lump sum that can help top up your pension. If you die earlier, your family receives a payout.

How to choose the right type for you

The right type depends on your goals. If you primarily want to protect loved ones against debt, term life insurance is often the simplest and most cost-effective option. If you also want to build savings or plan for inheritance, mixed products may be a better fit (though they’re more expensive).

Choosing between the (many) types of life insurance is easier if you use a few simple rules of thumb:

1. Focus on protection first

Ask yourself: What financial risk do I want to cover?

If you have a mortgage or dependents, term life is usually enough. It’s more affordable and straightforward, providing you with greater coverage for less money.

2. Consider savings only if it fits your plan

Mixed products combine insurance with investments, but they come with higher costs and complexity.

They may make sense if you have already maxed out simpler savings options (like pension savings or ETFs).
They can also help with inheritance planning, since payouts can go directly to your heirs.

Always compare the returns and fees with what you’d get by investing separately. Sometimes, separating insurance and investments is more efficient.

3. Adapt to life stages

Young families: pure risk is usually the priority. You want to protect against debt and provide for kids.
Mid-career: if your finances are stable, adding a mixed product can help you grow savings while staying insured.
Retirement planning: Consider mixed products with guaranteed payouts as a supplement to your pension.

How to get life insurance in Belgium

Before applying, it is essential to determine the exact amount of coverage you require. Consider immediate costs, such as funeral expenses, outstanding medical bills, or potential taxes (more on that later).

You should also factor in long-term obligations, such as paying off loans, covering tuition fees, or supporting a spouse’s retirement.

You can get life insurance by:

Applying online
Applying by phone
Applying in person at a local branch.

During the process, you will need to provide:

Identification documents
Recent bank details
Name your insurance beneficiaries.

Insurers will also ask questions about your personal situation, including your health, family, lifestyle, and any existing debts or mortgages.

If you decide to purchase life insurance online in Belgium, follow these steps:

Compare providers: Research life insurance companies to find the one that best fits your needs and budget.
Complete the questionnaire: Answer questions about your health, smoking habits, job, and lifestyle.
Set your insured sum: Determine how much money your dependents would need in the event of your death, taking into account existing debts and future expenses.
Choose the policy length: Select how long the contract should last. This usually depends on your children’s age, upcoming education costs, or existing loans. Most policies run for 10 to 30 years.

By carefully preparing and comparing options, you can secure life insurance in Belgium that provides peace of mind and lasting protection for your loved ones.

How much does life insurance in Belgium cost?

Life insurance premiums aren’t random. They’re calculated based on personal risk and the policy you choose. Here are the main drivers:

Age: Younger applicants usually pay less because their risk of death is statistically lower.
Health: Insurers consider pre-existing conditions, family history, and overall health. Chronic illnesses can increase premiums.
Smoking: Smoking is one of the biggest cost multipliers. Smokers in Belgium can pay double or more than non-smokers.
Policy type: term life covers a set period (e.g., 20 years) and is cheaper. Whole life adds a savings element, which makes it significantly more expensive.
Coverage amount and contract length: the higher the payout and the longer the contract, the higher the monthly premium.

Numbers always make things clearer.

Here’s how different profiles might play out:

A 30-year-old non-smoker buying a €200,000 term life policy could pay around €12 per month.
A 50-year-old smoker seeking the same coverage would pay ten times that amount.
For whole life insurance, premiums can be 5 to 10 times higher than those for term life.

How to save on costs as an expat

Here are strategies you can actually use to get lower premiums:

Start early: the younger you are when you apply, the lower your locked-in premium will be.
Choose term life insurance, especially if you’re not sure how long you’ll stay in Belgium. A 15–20 year term can cover your working years and mortgage without overcommitting.
Compare local and international providers: Some expats find Belgian insurers more cost-effective, while others prefer international companies that offer portability in case of relocation again.
Adjust coverage to your needs: do you need €500,000 in coverage, or would €200,000 be enough to clear debts and provide support? Right-sizing saves money.

How much death benefit do you need?

Let’s break it down with some simple rules and practical examples.

A quick way to estimate your coverage is to multiply your annual income by 5 to 10.

For example, if you earn €50,000 per year, that’s between €250,000 and €500,000 in coverage. This rule ensures your family can maintain their lifestyle if you were no longer around.

But rules of thumb only go so far. A more tailored approach is to add up the major costs your family would face without you:

Outstanding debts like mortgages, car loans, or personal loans
Children’s education expenses, from private school tuition in Belgium to university abroad
Daily living costs (rent, groceries, healthcare, transport) for at least 5 to 10 years

Belgium’s social security system does provide survivors’ benefits, but they rarely cover everything. A surviving spouse may receive a pension, but it typically replaces only a fraction of the household income.

If you’ve built your life around two incomes, that shortfall can be significant.

Here are some more factors you should consider as an expat:

Where would your family live? If your spouse and children were to return to your home country, the costs may look very different from those in Belgium. For instance, international school fees in Belgium can be high, while healthcare abroad might be much more expensive.
Currency and cost differences. Coverage that looks sufficient in euros may fall short in your home country if exchange rates or living standards differ.
Residency status. Some expats move frequently. If you expect to leave Belgium within a few years, think about portability—will your life insurance still cover your family if you relocate?

Tailor your policy to the most likely scenario, not just your current situation.

Are life insurance payouts taxed in Belgium?

When you’re choosing life insurance, taxes aren’t always the first thing on your mind, but they can make a big difference in what your family actually receives.

Good news first: the death benefit your beneficiaries receive is not taxed as income in Belgium. So, if your policy pays €300,000, your family won’t see that treated like a salary.

But there’s a catch: inheritance tax.

This depends on two factors:

Where you live (Brussels, Flanders, or Wallonia all apply different rates)
Who receives the money (close family members pay less than distant relatives or unrelated beneficiaries)

For example, a spouse or child usually pays much lower rates than a cousin.

If you’re not sure where your heirs would stand on the “taxability” front, ask your insurer, broker or financial advisor for a quick inheritance tax simulation. It helps avoid surprises.

Savings-linked policies

If you cash in (redeem) the “savings” portion of your policy during your lifetime, the payout may be taxed. The tax rate depends on how long you’ve held the contract and the type of earnings component (such as funds or guaranteed interest).

Can life insurance premiums be deducted from taxes?

Certain life insurance contracts qualify for long-term savings tax deductions. That means part of your yearly premiums can reduce your taxable income, lowering your tax bill today.

But not all policies qualify. This is something to check upfront with your insurer before signing, so you don’t assume you’ll get a deduction without checking.

Alternatives to life insurance for foreigners in Belgium

Life insurance isn’t the only way to protect your family financially. Depending on your goals, several alternatives may offer partial or complementary protection. The key is knowing what each option does well (and where it falls short), so you can choose the right mix for your situation.

Savings and investments

Savings and investments are the most straightforward safety net.

Here’s how they stack up in Belgium:

Savings accounts: Low-risk and accessible, but limited growth due to low interest rates.
Investment funds: Potentially higher returns, but also higher risk.
Pension savings (Pillar II and III): Employer-sponsored or individual plans that help build wealth over time, with tax advantages.

If your goal is to build long-term wealth while using Belgium’s pension tax perks, savings and investments are a smart move. Just keep in mind that, unlike life insurance, they don’t provide instant protection. It can take years before your savings reach the level of a life insurance payout.

Group insurance

Many companies, unions, and professional associations in Belgium offer group insurance as part of their benefits packages. These policies provide a built-in death benefit at no extra cost to you.

Before buying a separate policy, always ask your HR department, union rep, or point of contact:

Do you offer discounted term life insurance policies?
How much would it pay out to my family?
Does coverage remain valid if I leave the company/union/association?

Credit balance insurance

If you buy property in Belgium, your bank will likely require credit balance insurance. This policy clears your mortgage if you die before paying it off. That means your family can stay in the home without worrying about loan repayments.

Note: it only covers the outstanding mortgage balance.

It won’t help with daily expenses, school fees, or future financial goals. Still, these policies are generally the most affordable way to ensure your family can keep living in your home in the event of your passing.

Disability insurance

If you need life insurance, chances are you should also consider disability insurance. Instead of paying your family if you pass away, disability insurance pays you if you lose your ability to work due to illness or accident.

For expats, this is especially important because:

Belgian healthcare may cover treatments, but not your lost income.
If your spouse or dependents rely on your income, disability coverage helps prevent a sudden financial crisis.