German Risikolebensversicherung (term life insurance) is the most important policy for anyone with financial dependents — parents, main earners, mortgage borrowers. It pays out a fixed insured sum to the survivors if the policyholder dies during the term. Our term life insurance calculator shows the premium in seconds.
Why term life insurance matters
If the main earner of a family dies unexpectedly, income, mortgage payment and pension contributions disappear simultaneously. The German statutory widow's/widower's pension pays only 55 % of the pension the deceased would have received — for young families this often does not even cover half of living costs. A term life policy of €300,000 – €500,000 closes this gap for 10 – 15 years.
What drives the premium?
Five levers:
- Age — the dominant factor. Premiums roughly double every 8 – 10 years.
- Insured sum — proportional. €500,000 costs about twice as much as €250,000.
- Term — longer term = higher premium (cumulative mortality risk).
- Smoker status — smokers pay 70 – 100 % more. Honest disclosure is mandatory (§ 19 VVG).
- Tariff — constant sum, decreasing sum or premium tariff.
How much insured sum do you need?
Three reference points:
- Family protection — 3 – 5× gross yearly salary. At €50,000 gross that is €150,000 – €250,000.
- Mortgage cover — full outstanding balance plus a buffer. For a €300,000 mortgage that is €350,000.
- Survivors for children — €100,000 per child + running family expenses until end of studies.
Worked example: family, age 35, €250,000
- Age: 35 (non-smoker)
- Insured sum: €250,000
- Term: 20 years
- Tariff: constant sum
- Yearly premium: ca. €325, monthly ca. €27
- Expected surplus participation: ca. €49/year → effective ca. €276/year
As a smoker with the same profile you pay about €50/month — nearly twice as much.
Constant vs. decreasing insured sum
The constant sum stays level over the term — ideal for family protection, because survivors' financial need only declines slowly. The decreasing sum tracks the amortization of a loan — cheaper (around 30 – 40 % less) but only sensible if you only want to cover the outstanding mortgage balance.
Cross-over policy for married couples
Two separate policies where each spouse insures the other are tax-advantageous: the insured sum flows directly to the surviving partner and not into the estate — no inheritance tax, no forced-heir share. Standard recommendation from Stiftung Warentest and the German consumer agencies.
Term life vs. whole life insurance
Classic Kapitallebensversicherung combines death benefit with savings — and is barely recommended since the low-interest era. Better to separate: term life for the death benefit + ETF savings plan for retirement. Stiftung Warentest 2024: "Whole life insurance is generally not worthwhile for new customers."
Health questions — what you should know
Before issuing the policy, insurers ask about preconditions, BMI, hobbies, occupation. Key points:
- Answer honestly — § 19 VVG pre-contractual disclosure duty. False answers can invalidate cover retroactively.
- For chronic conditions, submit anonymous risk pre-applications via a broker to several insurers — this avoids ending up on the central refusal register.
- Hobbies such as diving, climbing, motor sports can trigger risk surcharges.
What is surplus participation?
Insurers price conservatively. If fewer claims occur than calculated or invested capital earns more than the guaranteed rate, part of the premiums flows back as surplus. Typically 10 – 20 % of the gross premium. But: surplus is not guaranteed. Compare offers on the gross premium.
When should you sign?
- Birth of a child — the most common trigger.
- Property purchase with a mortgage — protect the outstanding balance, often required by the bank.
- Marriage / civil partnership, especially with income disparity.
- Self-employment — no statutory survivor's pension.
Related calculators
- German Disability Insurance Calculator — the most important income protection
- Personal Liability Insurance Calculator — second-most-important standard policy
- Accident Insurance Calculator — complements liability for own personal injury
- Financial Health Check — overall view of your insurance setup
Frequently asked questions
What does term life insurance not pay?
Suicide within the first three policy years (§ 161 VVG), death by gross negligence or criminal act. Death from war or nuclear hazards is typically excluded.
Can I cancel the policy?
Any time at end of the policy year, with 1 – 3 months notice. No surrender value (unlike whole life). Premiums paid in are lost — the policy is pure risk protection.
Who is the beneficiary?
Freely chosen: spouse, children, partner. Important: name them explicitly in the application — otherwise the sum flows into the estate (forced-heir share + inheritance tax apply).
Can high-risk occupations get cover?
Yes, but with a surcharge. Occupations like roofers, police officers or pilots cost 20 – 50 % more. When in doubt: submit several anonymous risk pre-applications.