Is accident insurance with premium refund worth it in Germany?
In short
Usually not. Accident insurance with premium refund (Beitragsrückgewähr) often costs four to five times as much as a pure tariff, because a large part goes into a savings plan. What comes back is the savings share with interest, guaranteed at about 75 to 100 percent of premiums depending on the tariff. Pure cover plus investing the difference yourself is almost always worth more in Germany.
Documented premiums for pure accident cover and key figures of combined tariffs, as of 2026.
Example
Typical range
Pure accident cover, EUR 100,000 basic sum
about EUR 4.33 to 17.90 a month
Pure accident cover, office job, EUR 100,000, 350 percent progression
about EUR 60 to 180 a year
Combined tariff with premium refund
up to 4 to 5 times the pure tariff
Guaranteed refund in the combined tariff
about 75 to 100 percent of premiums depending on tariff, minus insurance tax
Insurance tax
3.8 percent in the combined tariff, 19 percent in the pure tariff
As of October 2026.
Premiums for pure cover from publicly quoted tariff examples,
extra costs and guarantees from the sources listed.
The premiums, return and break-even in the example are guide values from our quoting practice.
Your premium depends on age, job and scope; we obtain the exact quote for you.
Worked example
Age 35, office job, EUR 100,000 basic sum, 20 year term
The same accident cover once as a combined tariff, once as a pure tariff with your own savings plan for the difference.
Combined tariff, EUR 50 a month for 20 years
EUR 12,000 paid in
Guaranteed refund at 90 percent
EUR 10,800, plus bonuses that are not guaranteed
Pure tariff, EUR 10 a month
EUR 2,400 for the cover
Difference into own savings plan, EUR 40 a month
EUR 9,600 paid in
Savings plan at 3 percent a year
about EUR 13,100 after 20 years
Savings plan at 1.2 percent a year
about EUR 10,800, level with the guarantee
From about 1.2 percent return the separate route wins, at 3 percent by around EUR 2,300. Your money also stays available at any time, and the accident cover runs independently.
How the contract works
Accident insurance with premium refund is two contracts in one. Part of your premium pays for accident cover, the other part is invested like a classic endowment life policy. Acquisition and admin costs are taken from the savings share first.
The name is misleading. You do not get all premiums back, only what was saved in the savings part. Many tariffs today guarantee only part of the premiums, for example 75 percent, others 90 to 100 percent, in each case minus insurance tax. Anything above that depends on bonuses that are not guaranteed.
Part of the premium
What it is used for
Does it come back?
Risk premium
disability benefit, progression, add-ons
no, it is the price of the cover
Costs
acquisition, sales, admin
no
Savings premium
invested like life insurance
yes, with interest, safe up to the guaranteed sum
Bonuses
returns above the guaranteed rate
only if they are earned
The maths: combined tariff versus pure cover plus own savings
The fair comparison is not the combined tariff against nothing, but against pure accident cover with the same benefits plus investing the rest yourself. In the example below the break-even is around 1.2 percent return a year. If your own investment earns more, keeping them separate wins.
Then there is flexibility. You can use your own money at any time. In the combined tariff it is tied up for 15 or 20 years, and if you want out early you get the surrender value.
Tax when the money is paid out
For contracts concluded after 31 December 2004, the difference between payout and premiums paid counts as capital income in Germany. All premiums count, including the share for accident cover and the insurance tax. That is why the taxable gain is often small.
If the payout comes after a term of twelve years and after your 62nd birthday, only half of the gain is taxed, for contracts before 2012 already after your 60th birthday. That half is taxed at your personal rate. The insurer first withholds 25 percent capital gains tax on the full gain; the correction happens in your tax return.
When it can still make sense
For a few people forced saving has real value: those who know they will not put money aside if it is freely available, and who want a guarantee for the whole term. Even then, know the guaranteed payout in euros first and compare it with a pure tariff.
An old contract concluded before 2005 can be worth keeping. The payout can be tax-free under certain conditions, for example a term of at least twelve years and premiums paid for at least five years.
An existing contract: cancel, make it paid-up or keep it
Never cancel before new cover is in place. Cover ends with the cancellation, and depending on your age and health a new contract can be more expensive or come with exclusions.
Instead of cancelling you can usually make the contract paid-up. The saved capital stays and keeps earning interest, but accident cover lapses. You find the current surrender value in the annual statements or can ask the insurer.
Option
What happens
Makes sense if
Cancel
surrender value is paid out, cover ends
the contract is young and new cover already exists
Make paid-up
capital stays invested, cover lapses
the surrender value is still well below premiums paid
Keep
cover and savings continue
the contract is old, close to maturity or started before 2005
Step by step
Find the guaranteed payout in euros in the quote, not just the percentage.
Put a pure accident tariff with the same basic sum, progression and limb table next to it.
Work out the premium difference over the full term.
Check what return your own investment would need.
With an existing contract, take out new cover first, then decide on cancelling or making it paid-up.
Checklist
Guaranteed maturity payout in euros known
Pure tariff with the same benefits calculated for comparison
Surrender values of the first years checked in the quote
Term fits your plans for 15 to 20 years
Tax-free payout of a pre-2005 contract taken into account
New cover in place before an old contract is cancelled
Common mistakes
Believing you get all premiums back
Cancelling a young contract and accepting the loss without checking the paid-up option
Choosing the combined tariff and setting the basic sum too low
Cancelling before new accident cover exists
Questions and answers
Frequently asked
Do I get all my premiums back?
No.
What comes back is the savings share with interest.
Depending on the tariff, about 75 to 100 percent of premiums are guaranteed, minus insurance tax.
The share for accident cover is used up.
What does UBR mean?
UBR stands for Unfallversicherung mit Beitragsrückgewähr, accident insurance with premium refund.
In German law it is called Unfallversicherung mit Prämienrückgewähr,
and its savings part is supervised under life insurance rules.
Can I cancel a contract with premium refund?
Yes, you then receive the surrender value,
usually much less than you paid in during the first years.
Alternatively you can make it paid-up, but then the accident cover lapses.
Is the payout taxed in Germany?
For contracts since 2005 the gain is taxable, meaning payout minus all premiums.
After twelve years and from age 62 only half.
Old contracts from before 2005 are tax-free under conditions.
Is premium refund worth it for children?
Rarely.
For children a high basic sum with progression matters.
Money for later is more flexible in a separate savings plan,
for example for training or a driving licence.
Why is the insurance tax lower?
Accident insurance with premium refund has its own rate of 3.8 percent,
because a large part of the premium goes into savings.
