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Can I deduct term life insurance premiums from my tax in Germany?

In short

Yes, you can deduct term life insurance premiums (Risikolebensversicherung) from your tax in Germany as a special expense, because the law names risk policies that only pay on death. It rarely helps though: the cap is EUR 1,900 for employees and EUR 2,800 for the self employed, and health insurance almost always fills it alone. This is not tax advice.

Can I deduct term life insurance premiums from my tax in Germany?

What it costs

Figures based on German law for 2026, without solidarity surcharge or church tax.

ExampleTypical range
Employee, EUR 40,000 gross, statutory health insurance, premium EUR 180 a yearEUR 0 tax saving
Cap for other provident expenses, employeesEUR 1,900 a year
Cap for other provident expenses, self employedEUR 2,800 a year
Own share of health insurance on EUR 40,000 gross (8.75 percent)EUR 3,500 a year
Age 30, non smoker, EUR 200,000, 30 year termabout EUR 9 to 16 a month

Legal figures from the sources listed, as of November 2026.

The EUR 180 premium and the monthly prices are guide values from our quoting practice.

Whether a deduction works in your case is calculated by the tax office; this is not tax advice.

Worked example

Father with term life cover

He earns EUR 40,000 gross, is in statutory health insurance and pays EUR 180 a year for EUR 200,000 death cover.

Own share of health insurance (8.75 percent)EUR 3,500
Cap for other provident expensesEUR 1,900
Health insurance above the capyes, other insurance drops out
Term life premium EUR 180no effect

His tax goes down by EUR 0. What matters more is whether his wife holds the policy, so the payout does not fall into his estate.

Term life insurance as a special expense

Section 10 (1) no. 3a of the German Income Tax Act lists contributions to risk insurance that only pays on death as special expenses. A classic term life policy qualifies, and so does a loan protection policy that only pays on death.

It shares a pot with liability, accident and disability insurance. Section 10 (4) caps the whole pot at EUR 2,800 a year, and at EUR 1,900 for employees, civil servants with Beihilfe and others with a health insurance subsidy. Couples filing jointly get both caps.

Why the deduction usually ends at zero

Basic health and long term care contributions are always deducted and take priority. If they exceed the cap, section 10 (4) sentence 4 excludes all other insurance from the deduction, term life included.

That is the normal case. On EUR 40,000 gross, members of statutory health insurance pay 8.75 percent themselves, half of the 14.6 percent general rate and the 2.9 percent average additional rate. That is EUR 3,500 for health insurance alone, far above EUR 1,900. Your term life premium then lowers your tax by EUR 0.

WhoCapDoes the premium help?
Employee, statutory health insuranceEUR 1,900almost never
Self employed, private health insuranceEUR 2,800rarely
Civil servant with BeihilfeEUR 1,900rarely
Married couple filing jointlyboth caps addedonly if both health policies together stay below

What about old endowment policies?

For contracts that started before 1 January 2005 and had a premium paid by 31 December 2004, section 10 (1) no. 3a keeps a transitional rule under the old law. These premiums sit in the same capped pot, though, and usually disappear there as well.

Newer endowment policies get no such deduction. So the difference to term life shows up in the payout, not in the premium.

Where tax really matters with term life

More important than deducting the premium is who holds the policy. If the insured person is also the policyholder, the payout becomes part of the estate and can trigger inheritance tax. For married couples with high allowances that is rarely a problem, for unmarried partners it quickly is.

If you insure each other crosswise, meaning you take out and pay for the policy on your partner's life, the payout is free of inheritance tax. In a real claim that often saves more than any deduction in all the years before.

Step by step

  1. Find the annual premium on your insurer's invoice.
  2. Enter it under other provident expenses, the tax office applies the cap.
  3. Do not plan with a tax saving if you pay health insurance contributions.
  4. Check who is policyholder and who receives the payout.
  5. As an unmarried couple, consider crosswise cover.

Checklist

  • Premium invoice from the insurer at hand
  • Policy pays only on death
  • Health insurance contributions for the year known
  • Policyholder and beneficiary chosen on purpose
  • Inheritance tax for unmarried partners considered

Common mistakes

  • Counting the premium as a tax benefit in your cost comparison
  • Checking the premium deduction but overlooking inheritance tax on the payout
  • As an unmarried couple, insuring your own life and naming your partner only as beneficiary

Questions and answers

Frequently asked

Where do I enter term life insurance in my tax return?

Under other provident expenses (Anlage Vorsorgeaufwand), together with liability,

accident and disability insurance.

The tax office checks whether anything of the cap is left after health insurance.

Why does the premium save no tax?

Because health and long term care contributions usually exceed the cap on their own.

Section 10 (4) sentence 4 then rules out the other insurance.

Is loan protection insurance deductible?

If it only pays on death, it counts like term life insurance among other provident expenses,

with the same cap.

Is the payout tax free?

There is no income tax on the death benefit.

Inheritance tax can apply if the person who died was the policyholder.

Our page on term life payouts has the details.

Is a more expensive policy worth it for tax reasons?

No.

In most cases the premium has no tax effect at all.

Decide on cover, term and conditions.

Sources

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