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Funeral insurance or term life insurance: which fits better?

In short

Funeral insurance or term life insurance: which fits better? For the funeral, funeral insurance, because it pays for life. Term life insurance ends after fixed years, usually by 85 at the latest, and a woman of 65 lives to about 86 on average. What term life does well: protect family or a loan at a younger age with large sums, for a fraction of the price per EUR 1,000.

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What it costs

Published premium examples for both types, so you can compare prices per sum insured.

Example	Typical range
Funeral insurance, age 50, EUR 7,000, premiums until 85, 36 month waiting period	about EUR 24 to 26 a month
Funeral insurance, age 65, EUR 7,000, 20 years of premiums	about EUR 39 to 53 a month
Funeral insurance, age 70, EUR 7,000, premiums until 85	about EUR 56 to 63 a month
Term life, age 40, non smoker, EUR 200,000, 20 years	about EUR 12 a month
Term life, age 50, smoker, EUR 100,000, 25 years	about EUR 77 a month

Guide values as of October 2026 from publicly quoted tariff examples.

That many term life tariffs are not designed for small sums like EUR 7,000 is a guide value from our quoting practice.

Your premium depends on age, health, smoking, sum and term; we obtain the exact quote as your broker.

Worked example

Woman, 50, smoker, partner without own income, EUR 100,000 left on the loan

She wonders whether funeral insurance is enough or whether she needs term life. This is how both contracts compare.

Term life EUR 100,000, 25 years	about EUR 77 a month
Paid in until the end at 75	around EUR 23,200
Payout	EUR 100,000, only on death before 75
Funeral insurance EUR 7,000, premiums until 85	about EUR 24 a month
Paid in until the 85th birthday	around EUR 10,150
Payout	EUR 7,000, certain after the waiting period

For partner and loan there is no way around term life; funeral money would not cover even a tenth of the loan. For the funeral she does better putting EUR 24 a month into her own account. After 25 years that is around EUR 7,200, which belongs to her even if she never needs it for this.

Two policies for two different jobs

Term life insurance protects people who live on your income: partner, children or the bank still owed money for the house. It pays only if you die within the agreed term. If you outlive the term, cover ends without payment.

Funeral insurance is a small whole life policy without a fixed end. It is certain to pay; only the timing is open. That is why it costs many times more per EUR 1,000 of cover. It is meant for the funeral and the costs that follow.

Feature	Funeral insurance	Term life insurance
Purpose	funeral and estate costs	protect family and loans
Usual sum	EUR 3,000 to 10,000	EUR 100,000 and more
Term	for life	fixed years, usually ending by 85
Certain to pay?	yes, after the waiting period	only on death within the term
Health questions	often none, with a waiting period instead	almost always, in detail
Price per EUR 1,000	high	low
Money back at the end?	no, paid only on death	no, cover ends without payment

Why term life rarely fits the funeral

Term life insurance can often only be taken out until about 75 and ends by 85 at the latest. According to the official life table, a woman of 65 lives about 21 more years on average and a man about 18. Many outlive the end of the contract, and cover is gone exactly in the years when the funeral comes.

On top of that, term life is built for large sums. For EUR 7,000 of funeral money it fits poorly, and premiums rise steeply with age.

When term life is the better choice

If someone lives on your income or a loan is running, term life is the more important policy. For a few euros a month it provides a sum that can carry a family for years. Funeral money of EUR 7,000 hardly helps there.

A side effect: if death occurs within the term, the large sum also covers the funeral. A separate funeral policy during those years is paying twice.

When you need neither

If you have EUR 7,000 to 10,000 in an account you leave untouched and nobody lives on your income any more, you need neither contract. A savings account with a power of attorney for your relatives is cheaper, because there are no acquisition and administration costs.

Funeral insurance is mainly worth it if you do not have the money at once, want to tie it safely to the funeral, or can no longer get other cover because of your health.

Combine both, one after the other

A sequence works well: term life during the family and loan years, with your own savings account for the funeral alongside. Once the loan is repaid and the account is full, term life ends without a gap.

If at around 60 you notice your savings will not be enough, you can then take out funeral insurance for the remaining gap only.

Step by step

Work out who lives on your income and which loans are running.
Calculate the sum needed for those years, often three to five annual incomes.
Take out term life with a term until the loan ends or the children are independent.
Find out what the funeral you want costs where you live.
Check whether savings already cover the funeral.
Ask for funeral insurance only for a remaining gap, with health questions if you are in good health.

Checklist

Purpose of each policy clear: family or funeral
Term of the term life policy matches the end of the loan
Funeral insurance only for a real gap
Total premiums compared with the sum insured
Beneficiary named in both contracts
Savings account calculated as an alternative

Common mistakes

Taking out term life for the funeral that ends before it is needed
Having young children and only funeral insurance, leaving the family unprotected
Paying for both contracts for the same purpose
Looking only at the monthly premium of funeral insurance and missing the total
Answering term life health questions carelessly, which can lead to a dispute on death

Questions and answers

Frequently asked

Can I still take out term life insurance at 70?

With some insurers until 75, with detailed health questions. Because the contract ends by about 85 at the latest, the term stays short and the premium high.

Does term life insurance also pay for the funeral?

Yes, if you die within the term. The sum can be used freely. If the contract has ended, there is nothing.

Do I get money back if I outlive term life insurance?

No. You pay for cover during the term, much like liability insurance. That is why it is cheap.

Is funeral insurance without health questions an advantage?

For people with pre existing conditions, yes. Healthy people often pay more for it and wait longer for full cover.

What about endowment life insurance?

It combines saving and cover and is usually more expensive than term life plus your own savings. For the funeral, funeral insurance is the leaner form.

Can I extend running term life insurance?

Some tariffs allow it without a new health check, but only up to the tariff's maximum age. Look in your terms and conditions.

Sources

NAMMERT insurance broker

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