Nobody likes to think about their own death. But for people with a family or financial commitments, good protection for those left behind is essential. Term life insurance (Risikolebensversicherung) is simple: if the policyholder dies, it pays an agreed sum to the surviving dependants and shields them from serious financial difficulty at an already hard time.
In Germany, term life insurance is not a legal requirement, but for many people it is an urgent need. Especially when a partner or parent earns the family's main income, the financial consequences of an early death can be devastating. Running costs, mortgages, education costs for children: all of this has to be paid for somehow. Without suitable cover, dependants can fall into serious financial hardship that weighs on their lives for a long time.
Term life insurance differs from endowment life insurance (kapitalbildende Lebensversicherung) in that it has no savings component. Premiums go only towards death cover, which makes it very affordable compared with other forms of life insurance. Even with a high sum insured of several hundred thousand euros, monthly premiums for young, healthy people can be quite modest. The value for money is good.
Term life insurance is for everyone who has dependants they want to provide for in case of an early death. That applies especially to parents with children, married couples or partners who depend on joint income, and property owners with mortgages that still have to be paid after their death.
When choosing term life insurance, the sum insured, the term, any extra options such as the right to increase cover later (Nachversicherungsgarantie) and the premium structure are important criteria. The health questions at application should also be answered carefully and truthfully.
We help you work out the right sum and term, so that your loved ones are financially secure in the worst case.
Term Life Insurance Benefits
RLV Basis: Sum insured 25,000 to 10 million euros, term 1 to 50 years, maximum entry age 74. Advance death benefit for incurable illness.
RLV Plus: In addition, premium deferral or reduction in tight periods, 3% automatic annual increase (Dynamik) without a health check, right to increase cover later, child bonus of 25% (max. 9 months), home-building bonus of 25%, conversion into a pension insurance, later co-insurance of a partner (up to age 45), premium waiver on occupational disability (optional).
RLV Plus Unfall: All RLV Plus features, plus an increased sum insured of 30,000 euros on accidental death.
Recommended sum insured: 3 to 5 times gross annual salary plus outstanding liabilities. Decreasing sum insured available for property finance. Death benefit is free of income tax. Premiums are deductible as provision expenses (employees 1,900 euros, self-employed 2,800 euros).
