Life insurance in the Netherlands (levensverzekering)

Thinking about what would happen to your loved ones if you weren’t around is never easy.

But there’s a hard truth:

Losing an income can leave families in a (very) tough spot. Especially with big expenses like housing, childcare, or debts still on the table.

But it’s not all bleak.

Life insurance in the Netherlands (levensverzekering) is designed to step in at exactly that moment. With the right policy, your family gets financial breathing room when they need it most.

That means stability, security, and a clear plan for the future.

However, navigating Dutch insurance options can be challenging, especially for expats.

The good news?

Once you understand how it works, you can make confident choices without second-guessing yourself.

In this post, you’ll learn:

What life insurance in the Netherlands actually covers

Who benefits most from having a policy

The main types of coverage (and how to choose between them)

How much protection you really need to avoid your family hardship

What is Dutch life insurance?

Life insurance in the Netherlands aims to protect your family’s financial security if you pass away.

The policy pays out a lump sum to the beneficiaries you name, providing them with the support they need to cover major expenses and maintain stability during a challenging time.

Losing a household income can create serious financial pressure. A Dutch life insurance plan helps bridge the gap by covering costs that government benefits alone may not fully address.

This makes it valuable for families who want peace of mind with:

Paying off a home loan or other debts
Covering everyday living expenses for several years
Saving for children’s university or other education costs

Who needs life insurance in the Netherlands?

Life insurance in the Netherlands is primarily designed for individuals who have dependents financially reliant on their income.

If you support a spouse, child, or parent financially, this policy provides essential protection.

But if nobody relies on your earnings, you may not need coverage at all.

Many adults start considering life insurance after becoming parents, since children immediately create financial responsibility.

An exception may be families who can live comfortably on savings or another partner’s income.

Here are the groups who benefit most from life insurance:

Parents with children

Coverage can help cover everyday expenses such as daycare, school fees, housing, and even college tuition.

If your children are older, you may only want to have a policy lasting until they are financially independent.

Main earners in the household

Life insurance secures the financial stability of a partner who does not earn enough to handle monthly bills alone.

Business owners

A policy ensures there is money available to keep the company operating if the owner passes away.

Adults with little savings

In this case, insurance can cover funeral expenses and prevent financial strain on loved ones.

Adults with outstanding debts

Coverage can help settle loans so they do not fall on family members.

Financial experts agree that life insurance in the Netherlands is most valuable for those who provide direct support to others. It is not always a lifelong need; many people only purchase coverage for the years they are responsible for their family’s well-being.

How does life insurance work in the Netherlands?

When you take out a life insurance policy, you agree to pay a monthly or annual premium. In return, the insurer promises to pay a set amount of money (called the death benefit) to your chosen beneficiaries if you pass away during the policy period.

With this amount, your family can continue to maintain their standard of living, cover funeral expenses, settle your debts, and even set aside some leftover money.

Terms vs. whole vs. variable life insurance

Life insurance comes in different types. The three most common are term life insurance, whole life insurance, and variable life insurance. Each type works differently, offers unique benefits, and comes with its own drawbacks.

Here’s how each of them works:

Term life insurance: You pay a fixed premium for a set period (for example, 10, 20, or 30 years). If you pass away during this time, your family gets a payout. This is the most straightforward type of policy, and is often available through Dutch banks or insurers.
Whole life insurance: Coverage lasts your entire life. Premiums are higher, but the policy builds a “cash value” over time. That means a portion of your payment is put into a savings account, which earns interest. Dutch insurers may not always offer this option, so you may need to consider an international provider. Premiums are significantly higher than those for term policies.
Variable life insurance: Similar to whole life, but your cash value is invested in funds like stocks or bonds. Returns depend on the market. These are, again, less common in the Dutch market (though they are still available). If you choose to go with an international provider, be cautious of fees and taxes.

Here’s a brief summary of each type’s pros, cons, and who it’s for:

Type of policy	Pros	Cons	Who it’s for
Term life insurance	Usually the cheapest, clearest, and simplest option	No payout if you outlive the term. If you choose to renew, you’ll pay higher premiums.	People who want affordable coverage to protect dependents or a mortgage
Whole life insurance	Lifelong coverage, and it helps you build savings.	Expensive, and using your cash value comes with numerous conditions.	Those seeking lifetime security and long-term wealth planning
Variable life insurance	Has an investment growth potential and offers some flexibility in where you want to invest.	Returns are tied to the market (risky). Contracts are complicated to compare and impose high fees.	Experienced investors who want both protection and investment in one plan

How to get life insurance in the Netherlands

The first step is research. In the Netherlands, most people start with online comparison sites like Independer or Pricewise. These let you filter policies by:

coverage amount
monthly premium
contract length

If you’d rather not dive into Dutch-language websites, consider working with a broker (tussenpersoon). A broker can explain terms in plain English, compare products from multiple insurers, and handle the paperwork for you.

Alternatively, Feather offers life insurance 100% in English, including sign-ups, contracts, claims, and more.

Insurers usually ask for these documents:

Your BSN (citizen service number)
a valid residence permit
a Dutch bank account (to pay monthly premiums)

These confirm that you’re legally living in the Netherlands and connected to the financial system.

Once you’re ready and have all the documents, here’s what the process looks like:

Choose a provider: Decide whether you’ll go with a comparison site or a broker. Your choice depends on your comfort with Dutch and how much personal support you want.
Answer health and lifestyle questions: Expect detailed questions about your health, smoking habits, family history, job, and lifestyle. Riskier jobs or hobbies may lead to higher premiums.
Decide the coverage amount: Think about how much your dependents would need if you weren’t around. Include funeral costs, debts, living expenses, and future needs like education.
Pick the contract length: Life insurance terms are flexible. Some last 10 years, others 30. Choose based on your family situation (like whether your kids will need support through university, or how long you’ll be paying off a mortgage).
Submit documents and wait for approval: Once all documents are submitted, the insurer reviews your application. This can take longer for expats if extra documents are required.

How much does life insurance in the Netherlands cost?

Premiums vary depending on several risk factors:

Age: Younger applicants typically pay far less than older ones.
Health: Existing medical issues, weight, or chronic illnesses can lead to increased costs.
Lifestyle: smoking or high-risk professions typically push rates higher.
Coverage and duration: Larger payouts and longer terms result in higher monthly premiums.

For example:

A healthy non-smoker aged 35 might pay €10 to €20 per month for €200,000 of coverage on a 20-year policy.
By age 45, the same plan could cost nearly twice as much.

If you want to lower your premiums, here are 4 tips we recommend to everyone:

Apply while you are younger to secure lower rates.
Use decreasing-term insurance if your goal is to cover your mortgage.
Improve health markers, such as quitting smoking or reducing weight.
Compare offers through independent platforms like Independer or Pricewise instead of accepting the first option that comes across your desk.

How much death benefit do you need?

Figuring out the right death benefit isn’t about guessing a number.

It’s about ensuring your family's financial security, without overpaying.

For expats in the Netherlands, the calculation is slightly more complex. You’re balancing Dutch living costs, local benefits, and maybe even financial ties back home.

Let’s break it down.

A common benchmark is to aim for 5–10 times your annual income.

Why?

That cushion helps your family maintain their lifestyle while they adjust and make long-term plans.

But… Expats often have different financial setups from locals.

Perhaps you’re renting instead of buying, or your kids’ international schooling costs are higher.

That’s why it pays to refine the number to your specific situation and consider the expenses your family would face without your income.

Here are the big ones:

Housing costs: Mortgage balance or long-term rent. This is usually the biggest line item. Aim to cover your mortgage entirely, or pay for 3 to 5 years’ worth of rent
Childcare and education: Daycare, after-school care, or international school fees. Generally, you can assume that amount to be between €150,000 and €300,000 per child.
Debts: Credit cards, personal loans, or anything that shouldn’t fall on your partner or kids.
Everyday living: Groceries, transport, utilities, health insurance, and healthcare.

For example:

Let’s say you earn €60,000 per year, have a €200,000 mortgage, and two children in daycare.

Covering the mortgage plus at least 10 years of childcare and schooling could push your coverage needs closer to €600,000–€700,000.

Will the Dutch government tax the payout?

The short answer is that life insurance payouts in the Netherlands are not taxed as income, but inheritance tax does come into play.

Here’s how it works:

Instead of income tax, payouts may fall under inheritance tax (erfbelasting). This is where things get more complicated (especially for foreigners).

The tax depends on two factors:

The relationship between the insured person and the beneficiary.
The “exemption amount” (the portion of a life insurance payout that beneficiaries can receive tax-free before Dutch inheritance tax applies), which is updated every year.

Here’s how it typically works:

Spouse or registered partner: very high exemption. In many cases, most or all of the payout is tax-free.
Children: smaller exemption. Anything above that amount is taxed.
Others (siblings, friends, distant relatives): very limited exemption. Most of the payout will be subject to taxation.

If your beneficiaries live outside the Netherlands, their country may also tax the payout.

That creates a big problems: Double taxation.

The Netherlands taxes the payout as inheritance, and the other country taxes it as well.

For expats, this is the ideal time to seek professional advice. A tax advisor familiar with cross-border inheritance rules can help you make sure your family doesn’t face unexpected bills.

Alternatives to life insurance for Dutch residents

Savings and investments

Some people choose to “self-insure” by building wealth rather than purchasing a policy.

If you have:

A savings buffer large enough to cover debts,
Or an investment portfolio that provides income for your dependents,

Then life insurance may be less essential.

The downside? This approach requires discipline and time.

For people just setting up in the Netherlands, building sufficient savings takes years. Until then, we recommend life insurance.

Employer’s survivor pensions (nabestaandenpensioen)

Many Dutch employers (sometimes, even unions or professional associations) include a survivor pension in their company pension scheme.

How does it work?

If you pass away while employed, your partner or children may receive ongoing payments. The amount depends on:

Your salary level
Your years of service

For expats, this is one of the first things to check. Log in to your pension portal or ask HR whether your contract includes a survivor pension. If it does, you may not need as much life insurance as you thought.

Mortgage protection products

If your primary concern is keeping the family home safe, mortgage protection may be the solution.

These products are designed to pay off the mortgage if one borrower dies, ensuring that your partner or family can continue to live in the home.

However, keep in mind:

Coverage is limited to the mortgage.
It won’t help with living costs, education, or other expenses.

That’s why many expats skip mortgage protection and opt for a term life insurance policy instead.

State benefits (anw)

The Dutch government offers a survivor benefit called nabestaandenuitkering ANW:

It’s means-tested (based on your household income).
It’s only available under specific conditions, like having young children or a disabled surviving partner.
Payments are usually too low to cover the totality of family expenses.

For most expats, ANW is more of a small supplement than a realistic replacement for life insurance.