How you can protect your survivors with life insurance

Trio with four fists: two elderly women are resting in Frankfurt from going for a walk.
Image: Frank Röth

Inheritance tax may be due if partners or children receive life insurance money from the deceased. But with a few simple tricks you can avoid unwanted involvement of the tax office.

Dhe German citizens love life insurance. There are currently around 87.1 million such policies in German households – including pension funds and pension funds, as well as old-age provision contracts, risk and supplementary insurance. The option of providing financial security for surviving dependents in the event of death is also very popular. And basically such a protection makes sense.

For example, when a caring family father takes out term life insurance for 300,000 euros so that his wife and children are financially secure in an emergency. If the husband dies, the wife as beneficiary receives the sum insured. What many are not aware of: In this case, inheritance tax is due on the sum insured – if the exemptions are exceeded.


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