Life insurance in Italy (assicurazione sulla vita)

Italy is known for its strong family ties and supportive public systems.

But there’s a hard truth:

When it comes to protecting your loved ones financially after you’re gone, state benefits and pensions won’t be enough to maintain their lifestyle.

Without a plan, everyday costs, debts, or even funeral expenses can quickly become a burden.

The good news?

Life insurance in Italy (assicurazione sulla vita) helps close that gap.

Whether you’re a parent, a homeowner, or an expat building a life here, the right policy ensures your family has financial stability when it matters most.

And there’s more:

Italian policies are often more affordable than in other European countries, thanks to longer life expectancy.

In this post you’ll learn:

What Italian life insurance is and how it works

Who benefits most

The differences between term, whole, and final expense

How much coverage to choose (and what it costs)

How taxes, inheritance rules, and alternatives affect your decision

Let’s get started.

What is Italian life insurance?

Life insurance in Italy, known as assicurazione sulla vita, is a contract designed to provide financial security for your family (or other beneficiaries).

If your children or other dependents rely on your income for their education, or you still have an outstanding loan, taking out a life insurance policy in Italy ensures that in the event of your death, the financial gap left by your lost income will be covered.

Italian life insurance is supervised by the Istituto per la Vigilanza sulle Assicurazioni (IVASS), the authority responsible for ensuring transparency and consumer protection in the Italian insurance market.

Who needs life insurance in Italy?

Life insurance in Italy is not limited to parents or retirees; it is also available to individuals of all ages.

It is a flexible tool that supports people at different life stages and financial situations.

Whether you want to protect your family, secure your business, or plan your estate, a policy can provide lasting peace of mind.

If you’re part of the groups below, you’ll benefit from having life insurance.

Group	How life insurance helps
Parents with children	Provides funds for everyday expenses, such as daycare, school fees, housing, and university costs.
Main earners	Protects a partner who may struggle to cover monthly bills alone by replacing lost income.
Business owners	Keeps the business running by ensuring that money is available in the event of the owner's passing away.
Older adults without savings	Covers funeral and final expenses, easing the financial burden on loved ones.
Adults with outstanding debts	Pays off loans or mortgages so that debts do not transfer to family members.
Expats in Italy with family abroad	Foreign residents may not be fully covered by Italy’s public pension or survivor benefits. A life insurance policy can close this gap, ensuring spouses or children receive support.
Estate planners	Italy’s inheritance system can be complex. Whole-life insurance policies are often used to cover inheritance taxes and provide liquidity, helping heirs avoid the need to sell assets.

How does life insurance work in Italy?

Life insurance in Italy, just like anywhere else, is a contract between you and an insurance company.

You agree to pay regular premiums, and in return, the insurer promises to pay a benefit to your chosen beneficiaries in case you die.

The money paid to beneficiaries depends on the type of policy:

Death benefit: a lump sum or annuity (regular income) is given if the insured person dies during the contract.
Endowment policy: pays a lump sum if the insured is still alive after a set period. This makes it both a protection and a savings tool.

Terms vs. whole vs. final expense insurance

When people hear “life insurance,” they often envision a simple product.

In reality, there are several types of policies, which vary drastically in complexity.

Each works in its own way, and each is designed to meet different needs. The three most common are term life, whole life, and final expense insurance.

Here’s how they work:

Term life insurance: Covers you for a set period, like 10, 20, or 30 years. If you pass away during that time, your family gets the payout. If not, nothing happens. These are great for young families, people with mortgages, or other debts.
Whole life insurance: Stays in place for your entire life, as long as you keep paying premiums. It also builds “cash value” that you can borrow against. Generally, there are fewer options in Italy for this type of insurance, so you may want to consider consulting a broker or comparing international companies. Recommended for people willing to handle complexity and who want to combine insurance and savings in a single product.
Final expense insurance: A smaller, more focused policy designed to cover funeral costs and other end-of-life expenses. Ideal for older adults seeking an affordable option to cover funeral costs.

How to get life insurance in Italy

When applying for life insurance in Italy, expect to provide a few key documents:

Personal ID and payment details: for identity and financial verification
Beneficiary information: who will receive the payout
Medical exam or health questionnaire: required for most policies, especially with higher payouts
Residence permit (permesso di soggiorno): if you’re a non-EU citizen living in Italy
Tax code (codice fiscale): essential for any financial contract in Italy

A simple term policy might only require a questionnaire, while larger coverage amounts typically involve a medical check.

Most expats choose to buy life insurance online. The process is straightforward and can often be completed in under an hour.

Here’s how it works:

Choose a provider: Italy has a wide range of life insurance companies to choose from. Compare costs, coverage, and terms to find one that matches your needs and budget.
Complete the questionnaire: You’ll answer questions about your health, lifestyle, smoking habits, and occupation. Riskier profiles (e.g., high-risk jobs or hobbies) may result in higher premiums.
Decide on the coverage amount: Calculate how much your family would need to cover funeral costs, pay off debts, and manage future expenses like education.
Set the policy length: Life insurance in Italy usually lasts 10–30 years. Choose based on your dependents’ ages, upcoming financial obligations, and outstanding loans.
Submit documents and finalize: Upload your ID, codice fiscale, and other required paperwork. Once approved, you’ll receive the policy details and can start your coverage immediately.

How much does Italian life insurance cost?

Premiums (your monthly payment) depend on who you are and what policy you pick.

Insurers look at a few basics to determine the cost of your policy:

Age: The younger, the cheaper.
Health: Pre-existing conditions or complicated health history drive up prices.
Lifestyle: Engaging in risky activities can increase your rate. For example, expect to pay up to 4x more if you smoke.
Coverage amount: Bigger payouts mean higher premiums. Same thing for coverage periods.

For example, at Feather:

A healthy 35-year-old will pay €10.73 per month for €300,000’s worth of coverage.
A 35-year-old smoker? €20.73 for the same policy.

The good news is that generally, Italian life insurance is more affordable than in other countries, since Italy’s life expectancy is higher than the EU average.

Tips to lower your premiums

Here’s how to save money on Italian life insurance:

Buy young: lock in low rates early.
Pick term life: best value if you just want protection.
Stay healthy: Non-smokers and fit applicants receive discounts.
Compare providers: don’t just take the first option you land on. Review at least 3 different offers.

How much life insurance coverage do expats in Italy really need?

Figuring out the right death benefit (the payout your family receives if you pass away) is one of the smartest financial moves you can make.

The right coverage gives peace of mind without overpaying for protection you don’t need.

The question is…

How do I find out the right number?

Well, most financial planners recommend coverage equal to 5–10 times your annual income. It’s a decent rule of thumb, but you’ll get more accurate results by looking at real-life costs your family would face.

Think about whether your policy should:

Pay off debts (like a mortgage, car loan, or credit card balance).
Cover day-to-day living expenses for your spouse or children.
Fund education costs for kids or dependents.
Build a financial cushion so your family isn’t forced to make quick, stressful money decisions.

For example, if you earn €40,000 per year and still owe €150,000 on your mortgage, a policy in the €300,000–€400,000 range could give your family breathing room by paying off the loan and covering living costs for a few years.

Special considerations for Italy

Living in Italy comes with unique financial factors that you’ll need to plan for:

Funeral expenses: Depending on the city, costs range between €3,000 and €7,000.
Inheritance costs: While life insurance payouts are usually tax-free in Italy, your heirs may still face legal or administrative fees when transferring assets, especially if they’re living abroad.

These aren’t massive amounts compared to housing or income replacement, but leaving them out could mean your family faces unnecessary stress at the worst possible time.

Expats also need to go a step further because their life is split across borders.

Ask yourself:

Do you have financial obligations in your home country (like a mortgage, loans, or dependents)?
Would your family stay in Italy or return home if something were to happen to you? The answer changes how much coverage you’ll need in each place.
Do your existing policies from abroad still cover you while living in Italy? Many don’t, or they only offer partial coverage.

Does Italy tax life insurance death benefits?

Death benefits paid to your heirs are not subject to inheritance tax in Italy.

This makes life insurance a powerful estate planning tool. Your family receives the full payout without any additional deductions.

Some policies, like investment-linked life insurance, include an investment component. In these cases:

The capital gain (profit from investments) is taxed at Italy’s standard investment rates.
The premiums you paid stay tax-free.

Alternatives to life insurance in Italy

If you’re living in Italy, these alternatives can also provide financial security:

Survivor benefits from INPS

Italy’s public pension system (INPS) offers survivor benefits to spouses and children.

Payments cover a portion of the deceased’s pension.
The exact amounts vary drastically and depend on how long you’ve been paying into the system and the circumstances of your family.

In general, these benefits are useful but insufficient to fully cover living costs.

Employer-provided insurance

Some employers (and unions) in Italy offer group life insurance.

Coverage is usually lower than that of a standalone policy, and it ends if you change jobs.

Still, it’s usually very affordable and is an excellent extra layer of protection.

Private pension plans (piani pensionistici individuali)

Private pension plans in Italy, often referred to as PIP, allow you to build an additional retirement fund alongside your public pension.

You make regular contributions, which are invested over time.
Returns can supplement survivor benefits and provide a safety net for your family.
Contributions are often tax-deductible (up to certain limits).

However, it takes years to accumulate sufficient capital to provide your family with robust financial protection. In the meantime, we recommend purchasing a term life insurance policy.