Life Insurance in Germany

What Is Life Insurance (Lebensversicherung) in Germany?

Life insurance (Lebens Versicherung) is an insurance product that provides a lump sum payment to your loved ones in case of your death. In Germany, it is also used as a savings or retirement tool, combining protection with long-term financial planning.

There are two broad types of life insurance in Germany:

• Term Life Insurance (Risikolebensversicherung): Term life insurance offers pure protection for a specific period (e.g., 10, 20, or 30 years). If the policyholder passes away during the policy term, the nominee receives the insured amount.

• Whole Life or Endowment Life Insurance (Kapitallebensversicherung): Whole life insurance provides life cover with a savings component and pays out either on death or at the end of the policy term.

Why Do You Need Life Insurance in Germany?

Here are a few reasons why having a Lebensversicherung is important:

• To protect your family’s financial future

• To cover outstanding loans like mortgages or car finance

• To secure your children's education

• To build savings for retirement (in case of endowment plans)

• To ensure peace of mind if you are self-employed or in an unstable job

Who Should Consider Buying Life Insurance?

Life insurance is essential for:

• Working professionals: Life insurance in Germany is necessary if you are the primary breadwinner.

• Parents with young children: Life insurance payout can provide for your children’s future needs.

• Mortgage holders: Your Lebens Versicherung can be used to pay off a home loan in case of untimely death.

• NRIs in Germany: Buying a term plan for NRI from India can be cost-effective and offers global protection.

What are the Benefits of Life Insurance (Lebensversicherung)?

How to Choose the Right Life Insurance Plan?

When selecting a Lebensversicherung, consider the following:

• Your age and health status

• Length of coverage needed (short-term vs. long-term)

• Whether you need only death protection or savings too

• The amount of coverage your family needs

• Monthly premium you can afford

How to Buy a Life Insurance Plan (Lebens Versicherung)?

• Assess your needs – Consider your family’s lifestyle, debts, and financial goals.

• Compare plans – Look at both German and Indian providers.

• Check eligibility – Some Indian insurers allow NRIs to buy policies digitally.

• Submit documents – Usually includes ID proof, address, income, and medicals.

• Complete medical tests – Either in Germany or via remote assessment.

• Receive policy – After approval, the policy document is emailed to you.

Why NRIs in Germany Should Consider Buying Life Insurance from India?

Many NRIs living in Germany find Indian term life insurance for NRI more affordable and flexible. Here’s why:

• Premiums are much lower in India than in international term plans

• Claim a 18% GST waiver on term insurance premiums paid via NRE bank account

• Receive 5% additional discount on premiums paid in annual mode

• Get tele/video medicals cleared online without having to visit India just to get your medicals cleared

• Receive global coverage and pre-approved cover for NRI customers

Final Thoughts

Whether you're living in Berlin, Munich, Hamburg, or any other city, securing a life insurance plan (Lebensversicherung) is a smart way to protect your loved ones. For NRIs in Germany, it’s also worth exploring term life insurance options from India, cost-effective, globally valid, and easily manageable online.