Life insurance in the Netherlands: Complete guide for expats

Life insurance in the Netherlands is not mandatory, but many people choose it to provide financial support for their loved ones after death. A policy can help cover living expenses, pay off debts, or ease other financial burdens. This makes it an important insurance option for expats, especially those living abroad with dependent family members. 

This guide explains what you need to know about life insurance in the Netherlands. It offers general information only, not professional advice. For guidance on your personal situation, you should consult a qualified insurance specialist in the Netherlands. 

What is life insurance?

Life insurance in the Netherlands (levensverzekering) provides financial security for your loved ones after your death. Beneficiaries are usually close family members, but you can choose who received the payout when you take out a policy. 

A life insurance policy can help cover funeral expenses, pay off debts, or replace lost income to support those you leave behind. After taking out coverage, you pay regular premiums. When you pass away, your chosen beneficiaries receive a payout – either as a lump sum or in periodic payments.  

For expats, life insurance can be an important way to protect dependents who may rely on your income for living costs. 

Types of life insurance available in the Netherlands

The three most common types of life insurance in the Netherlands are:

• Term life insurance (overlijdensrisicoverzekering – OVR)
• Whole life insurance (levenslange overlijdensrisicoverzekering)L
• Funeral insurance (uitvaartverzekering) 

To help you decide which might be the best type for you, we’ve prepared a brief overview of each, along with advantages and disadvantages. 

Term life insurance

Term life insurance covers you for a fixed period (e.g. 10, 20, or 30 years). If you pass away during this time, the insurer pays your beneficiaries – usually a lump sum, though sometimes as ongoing payments. Once the term ends, coverage stops. 

This is the most common type of life insurance in the Netherlands. It’s especially useful during periods of high financial responsibility, such as when you have a mortgage, are raising children, or carry long-term debts. Self-employed business owners may also use it to cover business liabilities or to provide financial security for family members if no pension benefits are available. 

Premiums for term life insurance in the Netherlands are generally affordable. You usually choose from 3 coverage types:

• Stable cover (gelijkblijvende overlijdensrisicoverzekering) – coverage and premiums stay the same throughout the term 
• Linear decreasing (lineair dalende dekking) – coverage decreases steadily over time, often with lower premiums than stable cover 
• Annuity-based (annuitair dalende dekking) – coverage decreases in line with the declining balance of an annuity-based mortgage 

Term life insurance pros	Term life insurance cons
✅ Affordable premiums  ✅ Good for working-age expats with financial commitments (mortgage payments, raising children) ✅  Flexibility (can usually amend policies if circumstances change)	❌ No guaranteed payout  ❌ Usually cannot access funds early

Whole life insurance

Whole life insurance in the Netherlands provides lifetime coverage for your entire lifetime. Unlike term life insurance, it guarantees a payout whenever you pass away, as long as you continue paying premiums. The trade-off is that whole life policies are usually much more expensive than term policies. 

This type of insurance is less common, but may appeal to high-income households, particularly for estate planning. Some policies include a savings or investment component, which can build up a cash value accessible under certain conditions, sometimes with tax advantages. However, whole life insurance is generally less flexible, and cancellation fees tend to be higher. 

Whole life insurance pros	Whole life insurance cons
✅ Guaranteed payout  ✅ Savings and investment options  ✅ Can often access some funds early ✅ Better for estate planning	❌ More expensive premiums  ❌ Less flexibility  ❌ HIgher cancellation fees

Funeral insurance 

Funeral insurance is a type of life insurance in the Netherlands covering funeral costs. You pay regular premiums in exchange for a payout shortly after your death, ensuring that your family does not bear the financial burden. 

There are 3 main types:

• Pre-arranged package (naturaverzekering) – the insurer pays the funeral provider directly for a fixed set of services
• Expenses only (sommenverzekering) – the insurer pays out a lump sum intended for funeral expenses, but how it is used is flexible
• Cash value policy (kapitaalverzekering) – a lump sum is paid to beneficiaries, who can spend it however they wish (useful for expats who may want a funeral overseas)

Coverage amounts are lower than with other life insurance types, typically up to around €15,000. Premiums are also lower. 

Funeral insurance pros	Funeral insurance cons
✅ Ensures family members not burdened with funeral costs  ✅ Quick payout to cover immediate funeral costs  ✅ Flexible spending options (e.g. cash value policy)	❌ Doesn’t provide long-term financial security  ❌ Pre-arranged and expenses-only policies less flexible

Life insurance requirements for expats in the Netherlands 

Expats who are official residents in the Netherlands can usually take out life insurance. Some term life policies also require you to be employed or self-employed) and may not cover you for lengthy terms if you have a limited residence permit. 

Your health, medical history, and lifestyle (e.g. smoking or high-risk hobbies) won’t usually prevent you from getting coverage, but they do affect your premiums. In some cases, serious conditions may limit your options. 

Most Dutch insurers apply age restrictions:

• You typically cannot apply for coverage after the age of 65-70
• Term life policies rarely extend coverage beyond age 75

Examples: 

• Centraal Beheer – term life coverage ends at 75; new applications are only possible up to age 68
• Allianz – life insurance in the Netherlands available from ages 18-65; term life ends at 75

Applicants usually complete a questionnaire covering health, medical history, pre-existing conditions, and lifestyle habits. If you are over 50, have certain medical conditions, or request a higher coverage amount, you may have to undergo a medical exam. 

How much life insurance do you need?

Your life insurance needs depend on the payout you want in the event of your death. Are you looking to provide ongoing financial support for dependents, or simply to cover debts and funeral costs? 

A simple way of determining your needs is to:

• Calculate your outstanding debts and financial commitments (e.g. mortgage)
• Estimate funeral costs and related expenses
• Replace income for your dependents by multiplying your net annual salary by the number of years you want coverage – often 3-5 years, though longer periods may be appropriate for some families 

You can also use this online tool from Allianz to estimate your likely needs. Note that it uses US dollars, but it asks all the relevant questions. 

If you are an expat, additional costs – such as repatriation of remains, relatives returning home, or covering dependents abroad – may apply. You might need coverage in multiple currencies to address these. 

No matter your situation, it’s a good idea to speak with a qualified insurance expert to discuss your individual needs. 

Life insurance costs and premiums in the Netherlands 

Several factors influence how much you’ll pay for life insurance in the Netherlands, including:

• Policy details – type of cover, insured amount, coverage length, and what’s included 
• Age – younger applicants general pay lower premiums 
• Health status and medical history 
• Smoking habits 
• Occupation – especially if it involves higher risks 
• High-risk hobbies – such as extreme sports
• Optional extras chosen – e.g. flexibility or an early payout option

Premiums can vary widely, from just a few euros to several hundred euros per month. As an example, Overlijdensrisico Verzekering shows how monthly premiums start at just over €3.50 for  €100,000 coverage over 20 years for a healthy 30-year-old. Some providers charge an initial one-time set-up fee (usually around €50-70). 

Most big insurers allow you to check personalized premiums online – Allianz and Feather are two examples.  

If you want to keep premiums as low as possible: 

• Avoid smoking and adopt healthier lifestyle habits 
• Consider paying annually instead of monthly 
• Look into bundle offers, where life insurance is packaged with health or other types of cover 

Buying life insurance in the Netherlands as an expat

The process for buying life insurance for expats in the Netherlands can vary between providers, but it usually involves the following steps:  

Step 1: Decide on your policy and coverage 

Start by deciding the type of life insurance you need and the amount of coverage you want. If you’re unsure, consider consulting a life insurance advisor for guidance. . 

Step 2: Compare providers 

You can use comparison tools to check premiums, but don’t only focus on price. Other factors to consider include:

• Available add-ons (e.g., mid-term changes, early payout options)
• Cancellation terms and exit fees  
• Customer reviews (e.g., Trustpilot feedback)
• Expat services, such as English-language support or global coverage  

Companies offering life insurance in the Netherlands include: 

• Allianz 
• Central Beheer 

Expat-friendly international providers with global plans include: 

• Clements 
• Feather 

Before taking out a policy, always check that the insurer is registered with the Dutch Central Bank (De Nederlandsche Bank – DNB) and supervised by the Authority for the Financial Markets (AFM). 

Step 3: Complete your life insurance application

Most insurers now offer an online application process. You can also apply by phone or in person at a local branch. You’ll usually need to: 

• Complete a health questionnaire 
• Provide personal details (ID, address, bank account)
• Answer questions about your employment, income, or Dutch residency (depending on the policy)

Step 4: Undergo a medical exam, if necessary 

For larger policies or depending on your age or health, your insurer may request a medical exam. This could be done by your own GP or by a doctor appointed by the insurance company. Once your application and medical details are reviewed, the insurer will confirm whether coverage is approved. 

If accepted, you’ll receive your policy documents along with your premium schedule and payment dates.  

Employer-provided life insurance

Some large employers in the Netherlands include life insurance in their employee benefits packages. Offering this type of coverage can help attract and retain staff. Life insurance is often bundled with other benefits, such as pensions or health insurance. Employers usually cover the premium,though employees may have the option to purchase additional coverage. 

International life insurance vs local coverage

If you purchase life insurance in the Netherlands, you can choose between a local Dutch provider or an international policy. Again, your choice should depend on your personal circumstances, and it’s advisable to consult an insurance specialist. 

In short, Dutch are generally designed for residents who stay in the country for the duration of the policy. You may need to discuss extended coverage options if you plan to move abroad. International life insurance offers global coverage, but it’s usually more expensive and not specifically tailored for Dutch residents. 

Key factors to consider:

• How long you plan to stay in the Netherlands 
• Where your beneficiaries live 
• Financial and administrative factors (e.g., taxes, compliance) 

The table below looks and some pros and cons for both types: 

	Pros	Cons
Local Dutch life insurance	✅ Lower premiums  ✅ Easier to manage under Dutch regulations  ✅ Payouts usually income tax-exempt	❌ Policy holders generally must remain Dutch residents unless add-ons are purchased ❌ Harder to include overseas beneficiaries  ❌ Services usually in Dutch
International life insurance	✅ Flexible residency during policy term  ✅ Global coverage (beneficiaries can live overseas) ✅ Multi-currency options  ✅ English-language services	❌ Higher premiums  ❌ Policies not tailored for Dutch residents, may involve administrative complications  ❌ Potentially higher tax or administrative costs

You can use providers like Wise for cross-border payments if you need to pay beneficiaries overseas. Transfers use mid-market exchange rates for lower fees, and you use a multi-currency account to manage funds in 40+ different currencies. 

Life insurance beneficiaries and international considerations

If you want to include international beneficiaries in a Dutch life insurance policy, check first with your insurer. While many expat policies allow foreign beneficiaries, Dutch providers may have restrictions or require an additonal premium. 

Some key questions to consider:

• Are there limits on the number of beneficiaries or payout amounts?
• Are any countries excluded?
• How are claims filed abroad, and how quickly are benefits paid?
• What are the international tax implications?
• How will funds be transferred, and what exchange rates apply?

When sending money overseas, using a currency transfer service can help reduce costs and ensure secure transactions. Wise uses the mid-market rate with no hidden charges. There are also discounts on larger transfers, which can save additional money on lump sum payments. 

Life insurance when moving countries

Most standard life insurance plans in the Netherlands require you to remain a Dutch resident. If you’re considering moving abroad, check with your insurer before purchasing a policy. Some providers may allow relocation as a change of circumstance, but this is not always the case. 

For expats and frequent travellers, international life insurance may be a better option. These policies are designed for cross-border living and ensure that your coverage continues no matter where you move. 

Tax implications of life insurance in the Netherlands

Payouts from term life insurance policies in the Netherlands are generally tax-free for the beneficiary. 

If you have an investment-linked or savings-based life insurance plan, any cash value that builds up is usually considered part of your assets for wealth tax (box 3) and must be declared on your annual tax return. 

Life insurance payouts may also be subject to inheritance tax if they are treated as part of the deceased policyholder’s estate. 

If you receive a payout and transfer it abroad, whether you owe additional tax will depend on the rules of the other country and any applicable tax treaties in the Netherlands. 

Tax rules can be complicated, particularly when dealing with laws in multiple countries. It’s wise to get professional advice from a tax expert familiar with Dutch life insurance before making any decisions. 

Life insurance and estate planning

Life insurance payouts in the Netherlands may be subject to inheritance tax. The rate of tax depends on the amount received and the beneficiary’s relationship to the deceased (for example, spouses and children benefit from higher exemptions and lower rates than distant relatives). 

Naming beneficiaries in your policy usually means the payout is paid directly to them, without going through the estate settlement process. However, this does not automatically make it tax-free. 

To make the most of your life insurance and estate planning, it’s a good idea to speak with a Dutch tax advisor. Writing a will can also help you decide how your other assets will be distributed. 

For expats with family overseas, transferring a payout to another country can involve large sums. Services like Wise offer transfers at the mid-market exchange rate, with quick and secure payment options. You can send large amounts of up to approx. £1 million (or equivalent) and there is a dedicated customer support team for large transfers. 

Common life insurance mistakes to avoid for expats

If you’re living in the Netherlands and planning for your family’s future, it’s easy to overlook a few key details when it comes to life insurance. Here are common mistakes expats make – and how to avoid them: 

• Not checking international coverage: Many Dutch policies only cover residents. Before signing, confirm that your policy remains valid if you move abroad. 
• Underestimating coverage needs: Living costs and exchange rates can reduce the value of a payment overseas. Factor in local expenses where your beneficiaries live, and consider currency changes.  
• Ignoring international tax rules: Tax laws differ between countries, and payouts may be taxed abroad. Ask a tax advisor how both Dutch and foreign rules affect your policy. 
• Forgetting to update your insurer of changes: Moving country without informing your insurer can cause problems. Always notify your insurer if you or your beneficiaries relocate. 
• Missing payments during relocation: Changing banks or moving abroad can interrupt premium payments. Set up automatic payments or check with your insurer when switching accounts.  

Life insurance claims process

If you are the beneficiary of a life insurance policy in the Netherlands and the policyholder passes away, you should firstly inform the insurance company as soon as possible. You can usually notify them online, by phone, or by post. 

You’ll normally need to provide the following basic information:

• Details of the deceased (name, address, date of birth)
• Policy details (policy number, type of policy)
• Your own details (name, address, contact information)
• Your relationship to the deceased 

Most insurers ask for a copy of the death certificate and your proof of identity as the policy claimant (e.g. passport). You may also need to show proof of relationship to the policyholder (e.g. birth certificate, marriage certificate). 

Exact claims processes can vary between providers. Here’s the Allianz claims process as an example. 

Once you submit the claim and documents, the insurer will review them and inform you of their decision. Claims for life insurance in the Netherlands are usually processed within about 30 days, though complex cases may take longer

If you encounter problems, first raise the issue with the insurance company. If it is not resolved, you can file a complaint with the Dutch Institute for Financial Disputes (Kifid). 

Getting professional advice in the Netherlands 

Getting advice from a licensed professional can help you make informed decisions and avoid costly mistakes when choosing life insurance in the Netherlands. You can consult individual insurance companies, independent insurance brokers, and other financial or legal advisors. 

To make sure an advisor is properly qualified, you can check their license on the AFM register. This ensures they are authorized to give financial advice in the Netherlands. 

Conclusion

Life insurance in the Netherlands is an important consideration for both nationals and expats. This guide can help you understand the key components and navigate challenges, ensuring you choose the right policy and know what to expect when taking out coverage. Consulting a professional advisor can be valuable before making any decisions. 

For expats with beneficiaries living abroad, additional considerations include paying large payouts and converting them into different currencies. Services like Wise offer international transfers and money management. You can send to 140+ countries and convert into 40+ currencies. Wise uses the mid-market exchange rate, avoiding hidden fees and enabling you to receive more in your pocket.

Helpful resources

Wise – provides international money transfer services if you need to move insurance payouts abroad

Dutch Association of Insurers – association of private insurance companies in the Netherlands 

Authority for the Financial Markets (AFM) – supervisory body for Dutch financial markets, including the insurance sector 

De Nederlandsche Bank – Dutch central bank that grants licenses to financial institutions 

Dutch Institute for Financial Disputes (Klachteninstituut financiële dienstverlening – Kifid) – mediation service for complaints about financial providers in the Netherlands 

Feather Insurance – English-language insurance broker in the Netherlands 

Allianz Life Insurance Calculator – helps you assess your life insurance needs