No one likes to talk about their own death. But as a parent or main breadwinner, it is one of the most important thoughts you can have: What happens to the people I love if I'm not here tomorrow? A Term Life Insurance is not a savings product, but a pure expression of love and responsibility. It ensures your family can stay in their home and remain financially secure if the unthinkable happens.
Key Facts at a Glance
| What is covered | An agreed sum paid to your dependants if you die during the term, for example to protect your family or a mortgage. |
|---|---|
| What is not covered | Suicide in the first three years, death after the term ends and deaths after incorrect health information. Details |
| Who needs it | For families, couples with a joint loan and anyone whose death would put others under financial strain. |
| What does it cost | For €200,000 over 20 years, premiums were mostly between €100 and €400 per year according to Finanztip; smokers pay considerably more. (source: Finanztip) Non-binding guide value (as of 2026); your premium depends on your situation. I will gladly prepare a non-binding quote for you: get in touch. |
| What to look out for | A sufficient sum and term, a decreasing sum for loans, options to increase cover and cross-over insurance for couples. |
Julia and Marc's Story: When Dreams Suddenly Shatter
Fictional example for illustration; all persons and events are invented.
Julia and Marc had just fulfilled their dream of buying a family home in Germany. The financing was tightly calculated but based on both their incomes. Marc worked as a civil engineer, while Julia worked part-time as an accountant to spend more time with their two young daughters.
On a rainy November evening, the unthinkable happened: Marc was involved in a fatal accident on his way home from a construction site.
Alongside the deep grief, Julia was suddenly faced with a mountain of problems. Marc's salary was gone. The mortgage, utilities, living costs, it was impossible for Julia to cover everything alone on her part-time job. The bank began sending notices.
Fortunately, Marc had planned ahead. When they bought the house, they had taken out a Term Life Insurance policy for 400,000 euros through my neutral digital consulting. Within weeks, the insurance paid out the full sum. Julia was able to pay off the mortgage immediately. Today, she and the children still live in their familiar surroundings. The financial burden was lifted, allowing her to focus entirely on her children. Marc gave his family a security that lasts beyond his lifetime.
Why Life Insurance is Essential for Expats in Germany
Unlike traditional life insurance, term life insurance is designed purely for death benefit protection. This makes it very affordable. You pay a small monthly premium, and if you pass away during the policy term, the agreed sum is paid to your beneficiaries.
This protection is especially important for:
- Young Families: To replace lost income and secure the children's education.
- Homeowners: To ensure the house is debt-free and doesn't have to be sold.
- Business Partners: To ensure the continuation of a company if a partner passes away.
What to Look for When Choosing a Policy
As your broker with a broad market overview, I compare both the premiums and the contractual details that matter in an emergency. In my digital consulting, we focus on:
- The Correct Sum Insured: We calculate exactly how much capital your family really needs.
- Increase Options: Can you increase the sum when you have another child or buy a larger property, without a new medical exam?
- Constant vs. Decreasing Sum: For mortgage protection, a decreasing sum (matching the remaining loan) is often the smartest choice.
- Terminal Illness Payout: Does the policy pay out early if a terminal illness is diagnosed?
Saving Taxes with the Right Structure
One point many overlook: when a partner receives the payout, inheritance tax can apply. Through a clever contract structure (known as cross-over insurance), we ensure that the money reaches your loved ones completely tax-free. This is a core part of my neutral digital consulting.
Coverage Calculator: How much does your family need?
Determine the sum insured necessary to protect your loved ones. You can toggle between monthly and yearly views.
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Partner's earnings, orphan's pension, etc.
Until children are independent or mortgage is paid.
The sum consists of your debt repayment (0 €) and securing the ongoing cost of living.
Requirements for Expats
- Valid German Address (Anmeldung)
- German Bank Account (IBAN)
- Valid Residence Permit (for at least 12 months for some providers)
- Proof of income
What Is Not Covered
Term life insurance is simple. These cases are nevertheless excluded:
- Suicide in the first three years: Under § 161 VVG there is no cover for suicide in the first three years.
- End of the term: If you die after the term ends, nothing is paid and premiums are not refunded.
- Incorrect health information: Incomplete information in the application can lead the insurer to withdraw from the contract.
- Inheritance tax: Not an exclusion, but important: unmarried couples may face inheritance tax unless the policy is set up cross-over.
How I Help You When You Need to Claim Benefits
As your broker, I am legally on your side, not the insurer's, and that matters most when something happens. This is how we proceed:
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1. Report it quickly
Let me know as soon as possible, by WhatsApp, phone, email or directly in the simplr app. Many policy conditions require prompt notification.
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2. Document everything
Keep photos, invoices, reports and the names of everyone involved. Good documentation speeds up processing considerably. How to write the claim report.
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3. Documents for dependants
Dependants need the death certificate, the policy and possibly a medical certificate. A stored overview, for example in an emergency database, helps enormously.
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4. I take care of the rest
I submit the case to the insurer, follow up and check the settlement. If the insurer refuses or cuts benefits, we look at the reasons together.