How to find the Best life insurance in Germany

Life insurance is a critical financial product that offers protection and security for you in Germany. In this guide, we will explore the various types of life insurance available. 👍🏼

Key Takeaways


Life insurance is a highly desirable financial product that offers a variety of options in Germany to meet different needs. This comprehensive guide aims to answer the most important questions about life insurance and enable you to make a well-informed decision.

Whether you are single, part of a couple, or a family with children, we will look at who can benefit from life insurance and which aspects are compulsory. We will also take a close look at the different types of life insurance available in Germany and help you choose the one that best suits your goals and particular circumstances. Join us on our journey through the realm of life insurance and find the perfect cover for you and your loved ones.

Who Needs Life Insurance? Is It Mandatory?

Life insurance is not a one-size-fits-all product; its importance varies based on individual circumstances. For single individuals without debt or dependents, life insurance might not be at the forefront of their financial planning. However, for those who have a mortgage or have family members relying on their income, life insurance takes on a new level of significance. In certain situations, such as when securing a mortgage, banks may even demand that applicants have life insurance as a safety net.

Couples with a single income earner face the possibility of financial strain if something were to happen to the breadwinner. In such cases, life insurance can provide crucial financial protection for the surviving spouse and any dependents. Similarly, families with children understand the value of life insurance in ensuring that their loved ones are financially secure in the event of the unexpected.

While life insurance may not be compulsory in all situations, its significance cannot be overlooked. It offers peace of mind, knowing that one’s family and loved ones will be taken care of in difficult times. Ultimately, the decision to get life insurance should be based on a careful evaluation of one’s personal and financial circumstances, with an eye towards providing a secure future for those we hold dear.

"Small" Life Insurance Vs. "Big" Life Insurance

In the German market, life insurance presents itself in two primary forms, each serving different financial objectives. The first type, known as “small” life insurance or a pension with an extra death benefit, offers a unique blend of savings and investments. Notably, it boasts tax advantages and capital gains when the policyholder reaches retirement age. A distinguishing feature of this type of life insurance is the potential for an additional death benefit if the insured person passes away before reaching retirement. This added payout can offer further financial protection for beneficiaries.

On the other hand, the second type, referred to as risk life insurance or term life insurance, takes a more straightforward approach. Unlike the “small” life insurance that accumulates savings and investments, risk life insurance is solely focused on providing death benefit coverage for a chosen period. It does not build any assets, making it an excellent choice for individuals seeking specific and time-bound financial protection. This type of life insurance is often selected to cover mortgage obligations or provide income replacement during the years when dependents may need financial support the most.

When choosing between these two types of life insurance, you should carefully consider your long-term financial goals, risk tolerance, and the extent of financial protection required. “Small” life insurance can be appealing for those aiming to supplement their retirement savings, while risk life insurance provides more targeted coverage for specific periods of need. Ultimately, the right choice hinges on aligning the life insurance policy with individual financial objectives and family circumstances.

Don't Get A Life Insurance With Cashback

When considering life insurance options in Germany, it’s crucial to be cautious of policies that promise cashback rewards at the end of the contract term. While the idea of receiving a cashback amount may seem appealing, the reality is that the specific cashback value is usually determined only upon completion of the contract. This lack of transparency can leave policyholders in the dark about the actual amount they will receive, leading to uncertainty and potential disappointment.

A more prudent and straightforward alternative is opting for instant rebate life insurance. With this type of policy, the insured individual pays lower premiums right from the start, ensuring immediate benefits and savings. By forgoing the allure of uncertain cashback rewards, policyholders can have peace of mind, knowing their life insurance provides tangible and predictable benefits.

The allure of cashback offers may tempt some individuals, but it’s important to recognize that these incentives may not provide the financial security and value they initially appear to offer. Instead, selecting a life insurance policy with transparent terms and immediate rebates can be a more reliable and cost-effective option in the long run.

We at PerFinEx GmbH can help you find the best life insurance in Germany. In doing so, we always address your individual needs and circumstances.

Important Details For Life Insurance In Germany

Choosing the right life insurance in Germany requires careful consideration of your specific goals and financial requirements. If your primary objective is to secure risk coverage for a certain period, term life insurance is the ideal choice. This type of policy provides a pure death benefit without accumulating any savings or investments, making it a straightforward and cost-effective option.

On the other hand, if you seek a more comprehensive approach that combines retirement savings with death benefits, a pension with a death benefit rider is a suitable solution. This type of life insurance allows you to build up savings over time while also providing a death benefit in case of an untimely passing.

For couples seeking life insurance coverage, opting for over-cross life insurance is highly recommended. This entails separating the policy owner from the insured person. In the event of the worst-case scenario, such as the death of one partner, this approach ensures a faster payout of the death benefit without having to go through lengthy inheritance procedures. Moreover, the payout is not subject to inheritance tax, providing additional financial relief during challenging times.

When navigating the myriad of life insurance options available, it is essential to conduct thorough research on different life insurance companies and their plans. Each company may offer multiple plans with varying features, benefits, and costs. By comparing and analyzing the details of each policy, you can find the most suitable life insurance that aligns with your unique circumstances and priorities. Making an informed decision now can offer peace of mind and long-term financial security for you and your loved ones.

best life insurance in Germany Calculator

By using the calculator, you can compare different term life insurance plans and their associated costs. It allows you to make an informed decision based on your budget and coverage needs, ensuring that you find the best life insurance in Germany that aligns with your specific requirements.

Unfortunately, we can’t provide the calculator in English yet, because we didn’t develop the calculator ourselves (API with iframe). Be assured that we will try to provide an English version of the calculator as soon as possible. The more people use our calculator, the faster we will be able to make it available in English. Until then, here are the filters you can set to find the best life insurance in Germany:

Ihr Alter (Your Age): The monthly premium is adjusted according to your age. The younger you are, the less you have to pay, as it is assumed that your teeth are in a better condition.

Insured Amount (Versicherungssumme): You can manually adjust this number – although we would suggest not adjusting it down, as this could leave us underinsured. 

Duration (Laufzeit): Here you can specify the desired term of the life insurance. The term must always be specified in whole years.

Zahlweise (payment method): You can choose to pay for your legal expenses insurance monatlich (monthly), quartalsweise (quarterly), halbjährlich (half-yearly), or jährlich (annually).

Raucher (smoker): Please indicate here if you have been a non-smoker for at least 12 months.


Finally – the results. The cheapest insurance that meets your specifications will be at the top, and you can click through the offer to see the coverage in detail. You can play around with the calculator to get a sense of how much different coverages will cost.

In conclusion, life insurance plays a crucial role in securing financial stability and peace of mind for individuals and families in Germany. By understanding your needs and choosing the right type of life insurance, you can ensure the well-being of your loved ones and protect against unforeseen circumstances. Whether it’s risk coverage or building retirement assets, life insurance offers flexible options to cater to diverse requirements.

Make an informed decision, and if you need assistance in choosing the right policy, you can book a free meeting with us to discuss your insurance needs or any other aspect of your financial requirements here. With the right life insurance, you can confidently embrace life’s journey with the knowledge that you and your family are financially protected.

1 thought on “Best Life Insurance In Germany – Comprehensive Guide”

  1. Pingback: Disability Insurance: Must-Have Insurance

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