Can I convert term life insurance into an endowment policy in Germany?
In short
Yes, you can convert term life insurance (Risikolebensversicherung) into an endowment policy (Kapitallebensversicherung) in Germany, but only if your contract has a conversion option. Then no new health questions apply, usually within the first 5 to 10 years and in some tariffs only up to age 60. The premium is recalculated and rises sharply.
Premiums, time limits and rates from published tariff details and specialist sources.
Example
Typical range
Term cover EUR 200,000, age 30, non-smoker, 25 year term
about EUR 7.59 to 15.35 a month
Time window for conversion without health check
the first 5 to 10 policy years, depending on the tariff
Age limit for conversion in one published tariff
up to the 60th birthday
Maximum guaranteed rate on the savings part
1.0 percent since 2025, unchanged recommendation for 2026
Effective costs of savings life policies
up to 3 percent a year according to the regulator's 2026 review
Endowment with EUR 200,000 sum, starting at 36, 25 years
roughly EUR 500 to 600 a month
As of October 2026.
Term premiums, time limits, rate and costs from the sources listed.
The endowment premium and the worked example are our own calculations at about 2 percent return
after costs, a guide value from quoting practice and not a promise.
Whether your contract has a conversion option is stated in your terms and conditions.
Worked example
Converting after four years or keeping term cover
A woman took out EUR 200,000 of term cover over 25 years at age 32, premium about EUR 12 a month. At 36 she considers using the conversion option.
Option 1: keep term cover
about EUR 12 a month, EUR 200,000 cover until 57
Option 1: invest separately as well
any amount, for example EUR 150 a month
Option 2: endowment with the same sum
roughly EUR 500 to 600 a month
Option 2: endowment with EUR 150 premium
sum only about EUR 50,000 to 60,000
If she is healthy, option 1 is clearly cheaper and keeps the family fully covered. Option 2 makes sense mainly if she has fallen ill and wants lifelong cover. Own calculation, a guide value from quoting practice.
What the conversion option is
The conversion option is written into the contract when you sign. It lets you swap pure death cover later for an endowment policy or, with some insurers, a pension policy with cover for dependants. Its value lies in one point: your health is not checked again.
No German law gives you this right in general. If the option is not in your terms and conditions, the only route is a new contract, with new health questions and a premium for your current age.
Feature
Examples from published tariffs
Time window
first 5 policy years or first 10 years
Age limit
up to the 60th birthday in some tariffs, none stated in others
Target product
endowment policy or pension policy with dependants cover
Health check
none
Premium
recalculated for the new contract
Decreasing sum
conversion often not included
Why the premium rises so much
Term cover only pays if you die during the term, which is why EUR 200,000 of cover at age 30 often costs just EUR 8 to 16 a month. An endowment policy also pays if you survive. The sum has to be saved from your premiums, and the guaranteed rate on the savings part has been capped at 1.0 percent since 2025.
Building EUR 200,000 as an endowment over 25 years works out at roughly EUR 500 to 600 a month. Anyone who wants to limit the premium has to cut the sum, and then the family is less protected than before.
When converting makes sense
Converting pays off mainly if you have become seriously ill and need lifelong death cover you could no longer get as a new customer. Then the option is worth real money, because no health questions are asked.
If you are healthy and actually want to save, converting is usually the more expensive route. According to a 2026 review by the German regulator, the costs of savings life policies reduce returns by up to 3 percent a year. Keeping term cover and investing separately is usually cheaper.
What happens to the old contract
The term contract ends or is merged into the new one. You get no money from it, because term life insurance builds up no savings. Before you sign, ask in writing for the guaranteed death benefit, the guaranteed maturity value and the new premium.
Step by step
Search your terms and conditions for Umtauschrecht, Umtauschoption or Umwandlung.
Note the time limit, age limit and possible target products.
Ask the insurer for a written conversion offer with premium, guaranteed death benefit and guaranteed maturity value.
Compare the offer with term cover plus separate investing.
Only sign once it is clear the family will not be less protected afterwards.
Checklist
Conversion option is in the terms and conditions
Time limit and age limit not yet passed
New premium affordable for the long term
Death benefit still covers family and loan
Guaranteed maturity value known in writing
Alternative without conversion calculated
Common mistakes
Missing the deadline because the option is buried in the small print
Cutting the sum on conversion and leaving the family underinsured
Converting while healthy when saving separately would be cheaper
Treating the non-binding profit share in the offer as a promise
Questions and answers
Frequently asked
Does every German term life policy have a conversion option?
No.
It is a contract option that not every tariff includes.
Tariffs with a decreasing sum often lack it.
Do I have to answer health questions when converting?
No, as long as you use the contractual option within the time limit.
That is exactly its value.
Can I convert into a pension policy instead?
With some insurers, yes, for example into a pension policy with dependants cover,
in one published tariff within the first 10 years and up to the 60th birthday.
Do I get money from the old contract?
No.
Term life insurance saves nothing, so there is no surrender value or balance to transfer.
What if the time limit has passed?
Then only a new contract with a health check and a premium for your current age is possible.
The term policy continues unchanged.
Is converting worth it as an investment?
Usually not.
At most 1.0 percent is guaranteed on the savings part, and costs reduce the return.
