Risikolebensversicherung - FINBER | Easy about finance in Germany

Risikolebensversicherung or life insurance (RLV) in Germany is a form of providing for family members: with it, you can best protect your family, facilitate mandatory mortgage payments or other loans in the event of your death. You can also protect your company financially with RLV in the event of your death, the death of your business partner, or the death of important employees.

How useful is life insurance?

When something happens to you, your family doesn't just lose a loved one. Family members may also face significant financial problems. Unfortunately, payments from compulsory pension insurance usually cannot cover existing expenses. Risikolebensversicherung can close this gap through a lump sum payment of the insurance amount.

However, life insurance is not designed to cover retirement age. The payment of capital to family members is made only in the event of the death of the insured person in the form of an agreed sum insured. For retirement savings, we recommend programs Rürup pension и Riester-Renteand pension investments.

Who is life insurance suitable for?

You need life insurance if your death could put your family members in financial hardship.

This applies in particular to:

The only working adult: Death benefit provides financial security for mourners during difficult times.
For young familiesA: In the event of the death of one of the parents, financial security is guaranteed and the children can be well cared for.
Families with loans : e.g. mortgage lending or student loan (BAföG). Your family members can use the death benefit to pay off the loan.
unmarried people who are in a relationship because they don't get anything from the statutory widower's or widow's pension.
For entrepreneurswho want to financially protect their company in the event of their death or the death of key employees.

For property buyers or builders

For most Germans, building or buying a house/apartment is the biggest financial project of their lives. Most of the financing is usually a loan secured by real estate.

Unfortunately, if the main breadwinner dies unexpectedly, it often happens that the remaining family members are no longer able to service their loan payments. Since the home or apartment serves as collateral for the loan, mourners lose not only a close relative, but also their home. RLV when buying a house or apartment is often useful to protect yourself from financial risks.

For couples

There are three options for mutual protection for couples:

• shared contract, also known as partner RLV
• one contract per partner
• two contracts with cross protection

One contract for both partners is usually slightly cheaper than two separate contracts. Whether this is also the optimal solution depends on personal circumstances: only one sum insured can be matched to the respective RLV, which may make sense for persons with the same income. However, if only one of the two partners works, or the income from work varies greatly, then the payments will also vary greatly depending on which partner dies. The solution is two separate contracts with significantly different sums insured.

For business partners

Risikolebensversicherung makes sense for entrepreneurs, in which case it makes sense to enter into a fixed-term contract with a life insurance partner - to ensure the existence of your own company. Because too often a company has to be liquidated due to financial problems after the death of the owner.

With term life insurance, business partners can also protect each other and their company in the event of the death of important employees. Ideally, you should separate these business risks from protecting your family.

Who benefits from life insurance?

If you don't have family members to care for after you die, RLV usually doesn't make sense. As a childless bachelor, you probably don't need life insurance unless you want to take out a loan to finance real estate or build a house. Even if you want to create an additional reserve for old age or return the premiums paid after the end of the contract, term life insurance is most likely not the right product for you.

It doesn't matter if you are the main earner, a young family with children, or someone else - RLV is a useful form of protection in many life situations. It is worth thinking about the financial consequences of your own unexpected death for the remaining family members.

If you have additional questions about life insurance, you can ask them at a free consultation:

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How long does it take to conclude a life insurance contract?

Risikolebensversicherung makes sense as long as your family members have a high risk of financial problems in the event of your death. Therefore, the length of life insurance coverage depends on your individual situation. If, for example, there is a loan on real estate, the agreement must continue until it is repaid. If you want to use life insurance to protect your family, the term should usually end only when the youngest child completes his education or training, when he is on his own two feet and no longer dependent on you financially.

How to calculate the sum insured for Risikolebensversicherung?

If you have decided on the term of life insurance, then the next thing to think about is the amount insured. As a rule, the sum insured must compensate for the lost income of the insured person until all family members get back on their feet.

Basic rule: sum insured = gross annual income x 5

Мы рекомендуем an amount of payment that is three to five times the annual gross income of the insured person. For example, if a father of two earns EUR 50 gross per year, the sum insured must be between EUR 000 and EUR 150. Any remaining debts on real estate loans or other loans must also be taken into account in the sum insured.

If you want to know how much the sum insured required for your life insuranceyou can't do without analysis of your current financial situation. How will your monthly income and expenses change if you die? What is the expected widow's or widower's pension and orphan's pension? What expenses decrease or increase in the event of death? With the help of these calculations, you can more accurately determine the amount needed.

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FAQ / Answers to frequently asked questions

Is it possible to return the premiums paid or receive a payment at the end of the insurance period?

No, the sum insured is paid only in case of death of the insured person.

Are the risks of contracting COVID-19 or damage from vaccination included in insurance coverage?

Yes, cases of coronavirus (COVID-19 infection or vaccination damage) are included in life insurance coverage. The amount is paid if the insured person has contracted the corona virus and died as a result of the COVID-19 disease or vaccination injury.

In what period of time should a life insurance contract be concluded?

Risikolebensversicherung, as a rule, is not tied to a specific point in time. However, there are certain life events when life insurance is especially important. For example, when you start a family or buy real estate. The financial implications if something happens to you is something that many people usually only realize when these events happen. The focus is on the financial security of your family members in the event of your death. For example, the money could be used to finance your children's education or to continue paying off loans.

Is the insurance premium taxable?

The death benefit is not subject to income tax. It doesn't matter how long the insurance lasted. However, it may be subject to inheritance tax if statutory allowances are exceeded. The tax rate is lower the closer the death benefit recipient and the policyholder are to each other.

What is checked during a medical examination?

For an individual and fair risk assessment, you will be asked about your health status. Sometimes a medical examination is also necessary so that the state of health can be assessed. For example, in the case of very large sums insured. It is also important for a health check whether you smoke. Your insurance premiums will be lower if you don't smoke. If you stop smoking at a later date, you can report it so that the insurance company can consider changes to your contract.

How are life insurance premiums calculated?

The amount of contributions depends on various factors. The sum insured, term and age of the insured person are the main variables that affect the amount of premiums. However, individual risk characteristics also have a large influence. This includes, for example, your current job, your hobbies and your health status. Dangerous hobbies such as rock climbing and health issues sometimes result in a so-called risk premium and thus a higher premium. The contribution also depends on whether you smoke or not.