medium_Life Insurance in Sweden (livförsäkring).png

small_Life Insurance in Sweden (livförsäkring).png

thumbnail_Life Insurance in Sweden (livförsäkring).png

Life Insurance in Sweden (livförsäkring).png

Life Insurance in Sweden (livförsäkring)

Life in Sweden offers numerous safety nets: world-class healthcare, excellent social security, and a supportive community. 

But there’s a black spot…

When it comes to protecting your family financially after death, state benefits aren’t enough. 

Survivors’ pensions are modest, and they rarely assist dependents living abroad. 

That gap can leave families vulnerable.

The good news? 

Life insurance (*livförsäkring*) bridges that gap. It provides a direct payout to your loved ones, helping them pay mortgages, cover childcare, or simply keep up with daily expenses during difficult times. 

And it doesn’t stop there. 

Depending on the type of policy you choose, you can even combine protection with savings or long-term estate planning.

> In this post, you’ll learn:  
> - What Swedish life insurance (*livförsäkring*) is and how it works  
> - Who benefits most from it  
> - The pros and cons of different types of policies  
> - How much coverage really costs (and tips to keep premiums low)  
> - How taxes, state benefits, and alternatives fit into your plan

Let’s get started.

## What is Swedish life insurance?

Life insurance in Sweden secures your family’s future if you pass away. The insurer pays a lump sum to your chosen beneficiaries, helping them cover daily costs, education, or debts.

Because losing an income can be extremely challenging for a household, a life insurance policy provides your loved ones with financial stability at a time when they need it most.

Common use cases for the payout include:

* Paying off a mortgage   
* Securing a few years’ worth of daily expenses  
* Setting aside a nest egg for higher education

Unlike health insurance, life insurance in Sweden is not mandatory. But for many households, it fills the gap between limited state benefits and actual financial needs after a death.

## Who needs life insurance in Sweden?

Life insurance is an essential tool for securing your family’s financial future. 

A policy offers stability in the event that your income stops unexpectedly, ensuring your loved ones are not left unprotected. 

Below are the groups most likely to benefit.

### Expats with family abroad

For international residents, life insurance is often more reliable than state benefits. 

The [Swedish survivor’s pension](https://www.norden.org/en/info-norden/survivors-pension-sweden) may not extend to family members abroad. 

With a personal policy, you can guarantee that your spouse or children (whether living in Sweden or overseas) receive direct financial support.

### Families with dependents

Parents, partners, and elderly relatives who rely on your income are especially vulnerable. 

Life insurance can cover daily living costs, childcare, tuition fees, and more. Without it, families could depend solely on limited state support.

### Homeowners with mortgages

If you own a home, lenders often recommend life insurance. The payout can clear your mortgage, preventing loved ones from being forced to sell the property.

### Business owners and freelancers

For the self-employed, income often depends directly on work. Life insurance can help cover debts, business expenses, and lost income.

Occasionally, trade unions or professional associations offer discounted group coverage. It’s worth asking.

## How does life insurance work in Sweden?

At its core, life insurance is a private contract with an insurer that operates predictably:

1. You sign the contract and choose the amount of the death benefits as well as your beneficiaries.  
2. You pay your premiums.  
3. In the event of death, your beneficiaries will receive the agreed-upon payout (dödsfallsbelopp) and can use it for any purpose they choose.

Still, most Swedish insurers exclude certain risks and will refuse to pay out in case of:

* Lying about (or omitting) pre-existing health conditions

* Death within a short waiting period (often 6 months) after buying the policy

* Very high-risk activities, like cave diving

Always read the exclusions carefully, as they can vary drastically between insurers.

## The 4 most popular types of life insurance

### Term life insurance

Term life insurance provides coverage for a specified period, typically ranging from 10 to 30 years.

If the insured person dies during that term, their beneficiaries receive a payout. If the policyholder outlives the term, the coverage ends with no payments.

In Sweden, term life insurance (livförsäkring med tidsbegränsning) is commonly offered through employers as part of workplace benefits. Many Swedish families also buy additional private coverage to protect mortgages and dependents.

| Pros | Cons |
| :---- | :---- |
| Lower premiums compared to other types of life insurance | No payout if you outlive the contract terms |
| Simple to understand with clear start and end dates | Premiums can rise significantly if you renew after the end of the contract |
| Good fit for covering temporary needs, like paying off a loan | Does not build any wealth over time |

Term life insurance is often best for young families, homeowners with mortgages, or anyone who needs affordable protection during key financial years. For example, expats with children often choose term policies that last until their children reach adulthood.

### Whole life insurance

Whole life insurance provides coverage for your entire lifetime, as long as you keep paying the premiums. Unlike term policies, it does not expire. Additionally, part of your premium contributes to a **cash value**.

Cash value is like a small savings account built into the policy. Each time you pay a premium, a portion of the payment is allocated to this account. 

Over time, it grows slowly with interest. You can borrow from it, withdraw money, or let it continue to build. However, using it will reduce the final payout.

In Sweden, whole life insurance is less common than term policies but is available through major insurers. It is sometimes marketed as a way to combine lifelong coverage with savings, although the returns are typically lower than those of other investment options.

| Pros | Cons |
| ----- | ----- |
| Guaranteed coverage for life | Higher premiums compared to term insurance |
| Builds cash value over time | Cash value grows slowly and may not keep up with inflation |
| Can be used for estate planning | Harder to understand |
| Premiums stay level over time | Little flexibility if your financial situation changes |

Whole life insurance is suitable for individuals who desire permanent coverage and are willing to pay very high premiums. In Sweden, it may appeal to those planning for their children's inheritance.

### Variable life insurance

Variable life insurance also gives you coverage for your whole life, while letting you invest part of your payments. A portion of what you pay goes toward keeping the insurance active, and the rest is invested in funds. 

These funds can grow if the stock market does well, but they can also lose money if the market drops.

This type of policy is different from whole life insurance. Instead of a slow but steady cash value, the money you invest here fluctuates with the market's ups and downs. 

That means you could build more savings, but you also take on more risk.

| Pros | Cons |
| ----- | ----- |
| Stays active for your whole life | You can lose money if the market falls |
| Chance to grow your savings faster | Fees can eat into your gains |
| You can choose where to invest | More complicated, needs attention |
| Can build good value over time | If investments do poorly, your policy could end unless you add more money |

In Sweden, variable life insurance (fondanknuten livförsäkring) is offered by banks and a few large insurance companies. It is often preferred by those who have already maxed out their pension plans but still wish to invest further.

### Universal life insurance

Universal life insurance also gives you coverage for your whole life. 

What makes it different is flexibility. 

You can change how much you pay in premiums and even adjust the size of the payout your family would get, even after the contract is signed.

Part of your payment goes toward insurance, and the remaining portion is deposited into a savings account. This savings component usually earns interest based on market rates, although it is less risky than variable life insurance.

In Sweden, universal life insurance (flexibel livförsäkring) is offered by a limited number of insurers. It is the least common, but it appeals to people who want more control over how they pay and what their policy looks like over time.

| pros | cons |
| ----- | ----- |
| Lasts your whole life | Can be confusing to manage |
| Lets you adjust how much you pay | Costs may rise if interest rates are low |
| Savings part can grow with interest | Growth is usually slower than investments |
| Flexibility to change your coverage amount | You need to keep track so the policy doesn’t lapse |

## How to buy life insurance in Sweden

Between Swedish-language paperwork, local regulations, and the requirement for specific documents, knowing what to expect saves time and stress. 

Here’s a step-by-step guide:

### 1\. Compare your options

In Sweden, you can buy life insurance directly from major insurers (like Folksam, Länsförsäkringar, or If), or through comparison websites that let you filter policies by:

* coverage amount

* monthly premium

* contract length

The catch: most comparison platforms and insurer websites are in Swedish. That can make things tricky if you’re not fluent.

If that sounds like an issue, Feather offers life insurance 100% in English, from start to finish.

### 3\. Prepare your documents

Most insurers will ask you for:

* a Swedish personal identity number (personnummer) or coordination number (samordningsnummer)

* a valid residence permit

* a bank account for monthly payments

These requirements prove you’re legally in Sweden and financially connected to the country.

Depending on the company, you could also have to prepare:

* medical records from your home country

* Official translations into Swedish or English

Collect these early to avoid delays.

### 4\. Sign up for the policy

For this step, you’ll have to:

1. **Determine the coverage amount:** Consider funeral costs, ongoing living expenses for your dependents, outstanding debts, and future needs, such as your children’s education.
2. **Set the contract length:** Policies usually last 10–30 years. Choose based on your family’s needs, such as when your children will be financially independent or when your mortgage will be paid off.
3. **Submit documents and wait for approval:** insurers will review your application.

## How much does life insurance in Sweden cost?

The price of life insurance in Sweden depends on three main things: your age, your health, and how much coverage you want. Insurance companies calculate your premium (the amount you pay each month) based on how much risk they take when covering you.

Generally, monthly premiums start at around **SEK 100** and can increase to **SEK 500 or more**. The lower end typically applies to young and healthy individuals with modest coverage, while the higher end is reserved for older applicants or those seeking larger payouts.

For example:

* A healthy 30-year-old could pay about **SEK 150 per month** for a policy worth SEK 1 million.

* A 35-year-old might expect to pay **SEK 250 per month** for coverage of SEK 2 million.

* By age 50, premiums often rise to **SEK 400–500 per month or more** for the same coverage.

Life insurance costs in Sweden are typically billed monthly, and you can adjust the coverage amount to suit your budget.

### What affects your life insurance premiums?

As mentioned, there are 3 main factors:

* **Age:** The younger you are, the lower your premium will be. Insurance companies view younger people as lower risk, as they are statistically less likely to die during the policy term.

* **Health and lifestyle:** Your overall health has a big impact on cost. Smokers, heavy drinkers, or people with risky hobbies like mountain climbing or skydiving will usually pay more. Insurers raise premiums because these factors increase the likelihood of death.

* **Coverage amount and length:** A higher payout (for example, SEK 3 million instead of SEK 1 million) results in higher premiums. Similarly, a 30-year term is more expensive than a 10-year term since the insurer covers you for a longer period.

### Tips to lower your premiums

While some factors, such as age or family history, are outside your control, there are practical steps you can take to reduce the cost of life insurance in Sweden:

#### 1\. Apply early

The earlier you buy coverage, the better. Premiums are much lower when you are young and healthy. Locking in a policy now means you keep that rate for the full term, even as you age.

#### 2\. Choose term life insurance

If your main goal is to protect your family financially, term life insurance is usually the most affordable option. It covers you for a set number of years, such as 10, 20, or 30, and costs much less than whole life insurance, which includes an investment component.

#### 3\. Use your employer’s coverage

Check if your job, union, or professional association offers group life insurance. These plans are often cheaper because risk is shared among many people. Even if you want extra private coverage, employer plans can reduce how much you need to buy on your own.

#### 4\. Compare, compare, and compare again

Life insurance prices vary a lot between insurers. Before you commit, compare at least three offers to ensure you're getting the best deal. Many comparison platforms in Sweden allow you to enter your age, health details, and desired coverage to receive instant quotes.

## How much death benefit do you need?

A common starting point is to aim for **5–10 times your annual income**.

For example… 

If you earn SEK 400,000 per year, that’s SEK 2–4 million in coverage. This ensures that your family can cover living costs for several years without major disruption.

But there’s a catch: This is a *rule of thumb*. 

As an expat living in Sweden, the numbers might not always align perfectly.

Here’s how we recommend you go about estimating the perfect amount of coverage:

* **Housing:** How much do you need to pay off your mortgage or cover rent for a few years?

* **Childcare and education:** How much do you need to pay off daycare, school fees, or future university costs?

* **Daily living:** How much do you spend on food, transport, healthcare, and other essentials, and for how long do you wish to cover these expenses?

* **Relocation or lifestyle adjustments:** Think about whether your family would stay in Sweden or if they might move back home. Depending on the answer (and the cost of living in your home country), adjust your desired payout accordingly.

## Will the Swedish government tax your life insurance payout?

One big advantage of life insurance in Sweden is that most death benefits are tax-free. Still, there are exceptions expats should be aware of.

Here’s how it works:

If your family receives a lump-sum death benefit (*dödsfallsbelopp*), they usually get the full amount without deductions. 

But, not all life insurance products are the same:

* **Investment-linked policies** are (in part) taxed like pension income or capital gains.

* **Public survivors’ pensions** are taxed as regular income, just like a salary.

If your beneficiary lives outside Sweden, their local tax rules may apply. Some countries count Swedish payouts as taxable income.

Before signing a policy, confirm with your insurer (or even better, tax advisor) whether your product is tax-free. If your family lives abroad, ask how the payout will be treated. 

## Alternatives to life insurance in Sweden

Life insurance is one way to protect your family, but it’s not the only safety net available. Here are the most common alternatives:

### Sweden’s public survivor benefits

The state provides a survivor’s pension (*efterlevandepension*) to a spouse, partner, or children, plus child benefits (*barnbidrag*) if children are involved. 

While helpful, these payments are modest and rarely replace a full income.

### Personal savings and investments

Savings accounts, retirement funds, or investments can provide security. The challenge is that building a large financial cushion takes time. 

Our recommendation is to pair steady savings with a smaller life insurance policy to balance out protection and cost.

### Employee benefits

Many employers offer group life insurance (*tjänstegrupplivförsäkring, TGL*) or survivor pensions through workplace plans. 

These reduce the need for private coverage, but protection usually ends if you leave the company.

### Mortgage insurance

For homeowners, mortgage insurance (*låneskydd*) pays off part or all of your loan if you pass away. This secures the future of your family’s home, but doesn’t cover any other expenses.