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How long should term life insurance run in Germany?

In short

As long as someone depends on your income: with children until the youngest is about 25, with a mortgage until the last instalment plus two or three years. Longer terms cost less extra than most people think: at 25, EUR 200,000 over 30 instead of 10 years costs about EUR 6.50 instead of EUR 3.30 a month.

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How long should term life insurance run in Germany?

What it costs

Monthly premiums from a published German tariff example and a consumer test, healthy non-smokers in office jobs.

Example	Typical range
Age 25, EUR 100,000, 10 years	about EUR 2 to 3 a month
Age 25, EUR 100,000, 30 years	about EUR 3.50 to 4 a month
Age 25, EUR 500,000, 10 years	about EUR 6.50 to 7 a month
Age 25, EUR 500,000, 30 years	about EUR 14.50 to 15 a month
Age 35, EUR 250,000, 30 years	about EUR 20 to 60 a month

As of October 2026. Premiums for age 25 come from one tariff example after profit sharing and apply to a low cost tariff. The range for age 35 reflects a test finding that expensive tariffs cost almost three times as much as cheap ones.

Worked example

Family, mother 34, children 2 and 5, mortgage with 24 years left

How the term works out when several purposes come together.

Youngest child until 25	23 years
Mortgage plus 3 years buffer	27 years
Longest purpose	27 years, cover ends at 61
Until retirement at 67 it would be	33 years, so 6 years without a real need

A 27 year term covers children and mortgage. Stopping six years before retirement saves exactly the most expensive years.

The term follows the purpose

Term life cover fills a gap that exists only for a while. When the gap closes, the policy can end. So there is no single right term, only a right term for each purpose.

If you have several purposes, the longest one counts. If the loan runs 18 more years but your youngest child needs support for 23, choose 23.

Purpose	Term until	Example
Children	youngest child about 25	child is 2, so 23 years
Mortgage	last instalment plus a buffer, not just the end of the fixed rate	25 year loan, term 27 to 28 years
Partner without own income	partner's own retirement	partner is 40, so 27 years
Business partner	planned exit	agreement on company shares, often 10 to 20 years

What a longer term costs

The risk of dying rises every year, so a longer term costs more. The extra is smaller than many expect. In a published example a 25-year-old non-smoker pays EUR 3.30 a month for EUR 200,000 over 10 years and EUR 6.47 over 30 years. Three times the term costs roughly twice as much.

That is why two or three years of buffer are almost always worth it. Shortening later is often possible, extending usually needs a new health check.

German fixed rates are not the loan term

German mortgages usually have a fixed rate for 10 to 15 years (Zinsbindung), but the loan runs much longer. Many newcomers set the life cover to the fixed rate period and are uncovered when the follow-up financing starts.

Ask your bank for the full repayment plan and set the term to the last instalment, plus a buffer in case the follow-up rate is higher and repayment slows down.

Too short costs more than too long

If the policy ends while the children are still studying, you are left without cover. A new policy at 55 costs many times as much and with health conditions may not be available at all.

To be fair, signing up to 67 by default when the children leave home at 50 means paying for years nobody needs. The last years carry the highest risk and are the most expensive.

When you do not need a long term

If the children are nearly grown up, the loan is small and your partner earns their own money, a few years or no cover at all may be enough.

And if you have enough assets to carry the loan and your family's living costs, you do not need a long term, you need no policy.

Step by step

List every purpose: children, mortgage, partner, business.
For each, note the year in which the gap closes.
Take the longest and add two or three years of buffer.
Check whether a second, shorter policy for part of the sum is cheaper.
Choose an extension option without new health questions if your plans are uncertain.

Checklist

Term runs until the youngest child turns about 25
Term covers the mortgage to the last instalment, not just the fixed rate period
Two or three years of buffer included
No end date after retirement without a reason
Extension or increase option included
Term checked again after the birth of another child

Common mistakes

Matching the term to the fixed rate period instead of the full loan
Signing up to 67 by default although the need ends much earlier
Not adjusting after another child is born
Cutting it too fine to save a few euros a month

Questions and answers

Frequently asked

How long does term life insurance usually run?

Mostly between 15 and 30 years, depending on your children's ages and the length of the loan.

Can I extend the term later?

Only if your policy has an extension option. Otherwise you need a new policy with new health questions.

Can I shorten the term?

With many insurers yes, and the premium falls. You can also cancel at the date you want.

What happens at the end of the term?

The policy ends without a payout. The premiums paid for the cover during the term.

Up to what age can cover run?

Depending on the insurer up to about 75 to 85. That rarely makes sense, because the last years are very expensive.

Does it matter if I leave Germany during the term?

Many policies keep running abroad if you keep paying. Check the residence clause before you choose a long term.

Sources

NAMMERT insurance broker

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Term life insurance (Risikolebensversicherung)

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