Life insurance in Germany: Complete guide for expats

Life insurance provides financial protection for your loved ones in the event of your death. In Germany, there is a wide range of insurance options. Although life insurance is not compulsory, you can obtain it from many providers and may be worth considering – particularly if you are an expat in Germany with dependents. 

This guide gives you an overview of life insurance in Germany. It is intended for general information only and should not be taken as professional advice. For tailored recommendations, consult a qualified insurance specialist before choosing a policy. 

What is life insurance?

Life insurance in Germany (lebenversicherung) provides financial protection for your loved ones in the event of your death. While it is most often used to support immediate family members, you can choose the beneficiaries when you take out a policy. 

You pay regular premiums and, in return, the policy pays out a benefit – usually a lump sum – to your chosen beneficiaries. This money can help cover living costs, pay off debts, or cover funeral costs. For expats, life insurance can be an important safeguard, especially if you have dependents who may need financial support or wish to return home after your death.  

Types of life insurance available in Germany

Life insurance products in Germany vary between providers, but in general, there are two main categories:

• Term life insurance (risikolebensversicherung)
• Whole life insurance (kapitallebensversicherung)

The right choice depends on your personal situation, financial responsibilities, and long term goals. Below is an overview of the key features, advantages, and drawbacks of each. 

Term life insurance 

A term life insurance policy provides coverage for a fixed period (e.g. 10, 15, or 25 years). You pay regular premiums, and if you pass away during the term, the insurer pays out an agreed lump sum to your beneficiaries. This is the most popular form of life insurance for expats and working-age people. 

Term life insurance in Germany offers affordable premiums that cover you during periods of high financial responsibility. For example, when you are raising children or have mortgage commitments. Policies are usually fairly flexible, with renewal and early cancellation options. They sometimes have early payout options, such as in the event of a serious illness or injury. On the downside, there is no payout if you live beyond the policy term period. 

There are three main types of term life insurance in Germany:

• Level term – where the lump sum payout stays the same throughout the policy 
• Decreasing term – where premiums and payouts reduce over time, often matching declining debts such as a mortgage  
• Increasing term – where premiums and payouts increase over time, usually in line with inflation and rising living costs 

Term life insurance pros	Term life insurance cons
✅ Affordable premiums  ✅ Greater flexibility, with renewal and early cancellation options  ✅  Better for working-age expats with financial commitments, e.g. raising children or mortgage payments  ✅ Awareness of long-term payment commitments	❌ No payout beyond policy term date  ❌ Usually no savings or investment component to policy

Whole life insurance 

Whole life insurance in Germany provides lifetime coverage right up until death. It’s popular with high-income individuals planning their estate, as well as those wanting to cover end-of-life costs (e.g. funeral expenses). 

This policy is lower-risk, as you are guaranteed a payout. There are also options to invest some of your payments, which can bring in additional returns. However, premiums are usually more expensive than for term life insurance. Policies are also less flexible (e.g. penalties for cancellation or early withdrawal). 

Whole life insurance pros	Whole life insurance cons
✅ Guaranteed payout  ✅ Savings and investment options  ✅  Better for long-term estate planning	❌ More expensive premiums  ❌ Less flexibility (no early cancellation)

Life insurance requirements for expats in Germany 

Life insurance in Germany is available to most residents, including expats. However, certain factors such as age, health, and lifestyle affect premium rates. Some domestic insurers may also set additional requirements related to residency or employment. For example, Feather requires applicants for term life insurance to be employed or self-employed and to meet certain residency criteria. 

When applying for life insurance in Germany, you will usually need to complete a questionnaire covering your age, medical history, pre-existing conditions, and lifestyle habits (e.g. smoking, alcohol consumption, or high-risk activities). In some cases, providers may also request a medical exam. You will have to pay higher premiums if you are older or have health-related risks. 

Many insurers also have age limits on their policies. It can be harder to find coverage if you are aged over 75. For instance, Allianz life insurance in Germany has a maximum entry age of 74. Some providers also have minimum entry ages, which commonly start at 18 or 25.  

How much life insurance do you need?

The amount of life insurance you need depends on the size of the sum you would like paid to your beneficiaries in the event of your death. Key factors to consider are outstanding debts (mortgage or other loans), funeral costs, replacement of your salary to cover ongoing living costs of your dependents, and the length of time you would like to provide financial support after your death. 

For example, you’ll need more coverage if you want to ensure long-term financial support for loved ones than if your main goal is simply to clear unpaid debts. 

A common way to estimate coverage is to add up all outstanding debts and funeral costs. If you want to replace your income, multiply your net annual salary by the number of years you’d like to cover. This is often 3-5 years, but some people choose up to 10 or 15 years for greater security. 

To get a more tailored estimate, you can also use online tools, such as Allianz’s life insurance calculator.  

Expats may need to consider extra costs. These can be repatriation of remains, relatives returning to their home country, or supporting overseas dependents. This may need availability of funds in multiple currencies. 

Whatever your situation, it’s best to consult an insurance professional or speak with your provider to determine the right level of coverage for your needs. 

Life insurance costs and premiums in Germany

Your life insurance premiums depend on both the policy you choose and your personal circumstances. Common factors that affect costs include:

• Type of insurance (e.g. term life or whole life) 
• Policy value (the size of the payout) 
• Age 
• Health status and medical history
• Smoking habits  
• Alcohol consumption 
• Body mass index (BMI)
• Occupation 
• High-risk hobbies (e.g. skydiving) 
• Optional extras chosen (e.g. early payouts, option to extend coverage)

Premiums in Germany can range from just a few euros a month to several hundred. For example, Hypofriend calculates that a €100,000 policy in Germany ranges from just over €3 a month for a non-smoker aged 25, to just under €120 a month for a smoker aged 55. 

If you’d like to lower your premiums, the most effective ways are to reduce risk factors (such as adopting a healthier lifestyle) and to choose the right level of coverage. For instance, opting for a decreasing term life policy if you only want to cover mortgage debts. You can also ask your insurer about discounts, such as paying annually instead of monthly, or bundling life insurance with other insurance products. 

Buying life insurance in Germany as an expat

The process of buying life insurance for expats in Germany is usually straightforward. Once you’ve chosen a provider and policy, you can often complete the application online within a few hours if there is no medical check requirement. Applications involving medical exams can take up to a few weeks, depending on appointment availability. 

Here are the typical steps you will need to follow:

Step 1: Choose your policy type and level of coverage

The right policy depends on your personal circumstances. In addition to deciding what you want to cover and for how long, you may want to include add-ons such as: 

• Early payout in the event of a life-limiting illness or injury 
• The option to extend coverage without another health check 
• The ability to increase your payout amount after major life events (e.g. having another child) 

If you’re unsure which policy best suits your needs, it’s a good idea to seek professional advice. 

Step 2: Compare insurance providers 

Most insurers provide quotes online or over the phone. Beyond premium costs, consider factors such as:

• Available add-ons  
• How easy it is to cancel a policy  
• Customer reviews (e.g. on comparison websites) 
• Expat-focused services, such as English-language support or international coverage options

Companies offering expat-friendly life insurance in Germany include: 

• Allianz 
• Feather 
• Getsurance 
• MW Expat

Before choosing a suitable insurer, make sure the company has a license to operate in Germany from the Federal Financial Supervisory Authority (BaFin). 

Step 3: Apply for your life insurance policy 

Many insurers in Germany offer online applications, though you can also apply by phone or in-person at a local office. You’ll typically need to provide personal ID, proof of address, and bank details. Depending on the policy, insurers may also request employment, health, or residency documents. 

Step 4: Complete a medical exam, if required 

A medical exam is more likely if you have any pre-existing conditions or are applying for a higher coverage amount. All applicants generally complete a health questionnaire, after which the insurer decides whether further checks are necessary. 

Once these steps are complete, you’ll receive your life insurance policy and related paperwork. From there, your only task is to keep up with your premium payments on the agreed dates. 

Employer-provided life insurance

Many employers in Germany offer life insurance benefits to attract and retain staff. Typically, this is through group life insurance contracts (gruppenlebensversicherung) which employees can join by making contributions from their salary. These policies provide a lump sum payment to the employee’s beneficiaries in the event of their death. 

In some cases, companies fully cover the cost of this insurance and provide it to employees free of charge. If you work in Germany and are unsure about the options available at your workplace, it’s a good idea to ask your employer. 

International life insurance vs local coverage

Your choice between international life insurance and local coverage will depend on your personal circumstances. Both options have advantages and drawbacks. Key factors include: 

• how long you plan to stay in Germany
• how often you travel
• where your beneficiaries live
• potential tax or administrative implications. 

German life insurance policies are generally designed for long-term residents, whereas international insurance provides worldwide coverage tailored for expats and regular travelers. Some local policies may include limited overseas coverage, but this isn’t always the case. 

The table below outlines the main pros and cons of each option:

	Pros	Cons
Local German life insurance	✅ Premiums usually lower  ✅ Easier to administrate, as fully compliant with German regulations  ✅  Payouts exempt from income tax	❌ Less flexibility, with more restrictions if you move abroad  ❌ Fewer international options (overseas beneficiaries, multi-currency options) ❌Services usually in German
International life insurance	✅ More flexible (easier to move policy abroad if you leave Germany) ✅ Global coverage (can pay overseas dependents)  ✅ More multi-currency options  ✅ English-language services	❌ Premiums usually higher  ❌ More complex, as may involve laws and admin procedures in multiple countries  ❌ Higher tax/admin costs could mean lower payouts

If you decide to take out an international life insurance policy in Germany, you can use Wise to make overseas payments via international transfers or hold the money in a multi-currency account. Transfers use the mid-market exchange rate with fees from 0.57%, and the multi-currency account lets you manage 40+ currencies in one place. 

Life insurance beneficiaries and international considerations

Expats taking out life insurance in Germany may wish to include beneficiaries living abroad. This is possible with international insurance and, in some cases, with domestic ones. However, it’s important to confirm the details with your provider in advance. 

Key considerations this include:

• Can you name beneficiaries living in different countries?
• Are there restrictions, such as limits on the number of beneficiaries, payout caps, or excluded countries?
• What are the tax implications for international beneficiaries, and could they reduce the final payment?
• How do claims and payments work across borders –  how are claims filed overseas, and how quickly are benefits paid? 
• How are payments made internationally, and what are the exchange rates?

If you need to send money abroad or convert currencies, providers like Wise can help reduce costs. Wise international transfers use the mid-market rate with no hidden charges, and there are discounts on larger transfers. You can also hold and manage funds in 40+ currencies using a multi-currency account. 

Life insurance when moving countries

Standard German life insurance policies often require you to remain a resident of Germany. Some insurers offer add-ons that provide coverage if you move abroad, though these usually come with higher premiums. Since terms vary by provider, it’s important to ask about these options when taking out a policy if you may relocate at some stage. If you are unable to transfer your policy, you may need to consider alternatives, such as taking out a new policy. 

If you expect to live outside Germany during the policy term, international life insurance may be a better option. These products typically provide global coverage, allowing you to move freely between countries without losing protection. 

Tax implications of life insurance in Germany

In Germany, life insurance lump-sum payments are generally tax free. However, taxation may apply if the payment is transferred abroad. Furthermore, if a life insurance policy forms part of someone’s estate, it may be subject to inheritance tax. 

Because tax rules can be complex – especially when more than one country’s regulations are involved – it’s advisable to seek guidance from a tax professional who is familiar with the German insurance system. 

Life insurance and estate planning

Life insurance policies in Germany are usually considered part of a person’s estate. This means beneficiaries may have to pay inheritance tax on their share. Tax rates range between 7-50%, depending on the value of the inheritance and the relationship between the deceased and inheritor. Close relatives benefit from significant tax-free allowances, currently €500,000 for spouses/civil partners and €400,000 for children. 

You can plan your German estate by writing a will, which allows you to decide who inherits your assets and in what proportions. To maximize the value passed on, it’s wise to seek tax advice. If you live in Germany and receive a life insurance sum as part of an inheritance, speaking with a tax professional will make sure you meet your tax obligations correctly. 

For expats, estate management and life insurance payouts can involve large cross-border transfers. If you need to move substantial sums abroad, Wise offers an international transfer service designed to reduce fees. Benefits include high transfer limits (typically up to £1 million or equivalent), discounts on transfers over £20,000, mid-market exchange rates with no hidden charges, and a dedicated customer support team for large transactions.  

Common life insurance mistakes to avoid for expats

You can avoid these common expat mistakes by carefully considering your individual needs and circumstances when choosing life insurance:

• Insufficient coverage for an expat lifestyle: If you plan to travel or relocate, make sure your policy provides international coverage. Don’t assume a domestic policy will remain valid overseas. 
• Underinsuring: This can happen if you underestimate living costs in a new country or overlook the impact of currency fluctuations.  
• Overlooking international tax liabilities: If your beneficiaries live abroad, check the tax rules and rates that apply to payouts in their country of residence. 
• Failing to update your insurer when moving countries: Always inform your insurer of you or your beneficiaries’ residence to avoid invalidating your policy.  
• Allowing coverage to lapse during relocation: When moving abroad and changing bank accounts, ensure payments continue so your policy remains active.  

Life insurance claims process

If you are the beneficiary of a life insurance policy and your loved one dies, contact the insurance company as soon as possible. You can find the exact steps on the company’s website or in the policy documents, if you have them available. Requirements vary – some insurers have online claims processes, while others ask you to call and send supporting documents by post or email. 

You will usually need to provide the policy details (including the policy number), a copy of the death certificate, and proof of your relationship to the deceased (e.g. birth certificate or marriage certificate), along with your own ID. 

After you submit the application form and documents, the insurer will review your claim and make a decision. In Germany, insurers typically aim to pay out within 30 days once all documents are received. 

If there are delays or you wish to file a complaint, BaFin has information on how to do this. 

Getting professional advice in Germany

When researching life insurance in Germany, consider seeking professional advice before making a decision. You can contact insurance companies directly or consult an independent insurance broker (versicherungsmakler) who can compare options for different providers. 

If you need legal clarity on the regulatory aspects of life insurance, consult a lawyer familiar with the German insurance market. You can also find general guidance on the BaFin website .  

Conclusion

Although life insurance in Germany may seem complex at first, this guide should help you understand the key points – the different types of policies available, how to choose the right one, what to expect when taking out coverage, and why professional advice can be valuable before making a decision. 

For expats, there are additional considerations, such as transferring payouts across borders or converting them into another currency. Services like Wise provide fast, secure, and low-cost international transfers to 140+ countries. By using the mid-market exchange rate, and Wise’s transparent fee structure means you can see exactly what you’re paying. 

Helpful resources

• German Insurance Association (GDV) – federation of private insurers in Germany 
• Federal Financial Supervisory Authority (BaFin) –  insurance regulatory body in Germany 
• Insurance Ombudsman Association (Ombudsfrau für Versicherungen) – dispute resolution service if you wish to complain about an insurance company 
• Feather Insurance – English-language insurance broker in Germany 
• Allianz Life Insurance Calculator – helps you assess your life insurance needs 
• Wise – provides transparent international money transfer services if you need to move insurance payouts abroad