What does a crosswise term life policy (über Kreuz) mean in Germany?
In short
Crosswise (über Kreuz) means each partner takes out term life insurance on the other's life, pays it from their own account and is the beneficiary. If your partner dies, you are paid from your own contract, so no German inheritance tax is due. For an unmarried couple that can mean about 84,000 euros less tax on 300,000 euros. The premium does not change.
Published premium examples per contract and inheritance tax under German law. A crosswise setup costs the same as a normal policy.
Example
Typical range
Age 25, non-smoker, office job, 200,000 euros, 30 years
about 6 to 7 euros a month per contract
Age 25, non-smoker, office job, 500,000 euros, 30 years
about 15 euros a month per contract
Inheritance tax for an unmarried partner on 300,000 euros, not crosswise
about 84,000 euros (30 percent on 280,000 euros)
Same sum, crosswise
0 euros inheritance tax
Premiums from a published insurer example, as of July 2026.
The tax is our own calculation under sections 16 and 19 of the Inheritance Tax Act,
with no other estate.
Not tax advice; we obtain the exact quote.
Worked example
Unmarried couple in Berlin, both 34, one child, mortgage
Each of you needs cover of 300,000 euros. We compare a policy on your own life with the crosswise setup.
Payout after the partner's death
300,000 euros
Partner's own policy: allowance
20,000 euros
Inheritance tax 30 percent on 280,000 euros
84,000 euros
Crosswise, premium from own account
0 euros
Same premium, but crosswise you keep 84,000 euros more for the mortgage and your child. Without it, almost a third of the cover would go to tax.
Three roles in a crosswise term life policy
Every German term life policy (Risikolebensversicherung) has three roles: the policyholder who signs and pays, the insured person whose death triggers the payout, and the beneficiary who receives the money. In a crosswise term life policy, policyholder and beneficiary are the same person and the partner is insured.
A couple therefore needs two contracts. Anna insures Ben's life, Ben insures Anna's life. Each pays their own contract and each is paid from their own contract.
Role
Policy 1
Policy 2
Policyholder and payer
Anna
Ben
Insured person
Ben
Anna
Beneficiary
Anna
Ben
Signs the consent
Ben
Anna
Why über Kreuz avoids German inheritance tax
If the person who died was the policyholder, the payout counts as an inheritance (Erwerb von Todes wegen). Then the tax allowance decides: 500,000 euros for a spouse, only 20,000 euros for an unmarried partner. With a crosswise policy the insurer pays you from your own contract. Nothing is inherited, so no inheritance tax (Erbschaftsteuer) is due.
Married couples often stay within the allowance anyway. For them a crosswise setup matters if the payout plus the rest of the estate could exceed 500,000 euros. For unmarried couples living in Germany it is almost always the right choice.
Your partner must sign
If you insure someone else's life for more than normal funeral costs, that person has to give written consent. This is section 150 of the German Insurance Contract Act. Without your partner's signature the crosswise policy is invalid and nothing would be paid.
Your partner also answers the health questions for their part of the application, because it is their life being insured. Fill in the forms together, not one person for both.
The joint account trap
For the tax effect to hold, each partner must pay their premium from their own money. If both contracts are paid from a joint account, it is hard to prove later whose money was used, which can lead to a dispute with the tax office.
The safest way is a direct debit (Lastschrift) from the policyholder's own account. It costs nothing and can be proven later with bank statements.
Separation and the death of the policyholder
After a separation each of you holds a contract on the life of your former partner. That is legal but usually unwanted. Common solutions are to cancel both or, with the insurer's consent, swap policyholders so each again owns a policy on their own life.
If the policyholder dies first rather than the insured person, the contract becomes part of the estate. Settle in your will who takes it over, otherwise third parties could end up holding a policy on your life.
When you do not need it
If you are married, the sum is well below 500,000 euros and there is little other wealth, a crosswise term life policy brings little tax benefit. Two policies on your own lives with the partner as beneficiary are simpler.
If one of you may move back to a country without inheritance tax, or with different rules, have the setup checked before you sign. German tax applies when the deceased or the heir lives in Germany.
Step by step
Work out the cover each partner needs, separately.
Apply for two policies: each partner as policyholder on the other's life.
Name yourself as beneficiary.
Have your partner answer the health questions and sign the consent.
Set up a direct debit from your own account.
State in your will who receives the contract if the policyholder dies first.
Checklist
Policyholder and beneficiary are the same person
Insured person is the partner
Partner's written consent signed
Premium paid from a personal account
Plan for separation agreed
Succession to the contract settled
Common mistakes
Paying both contracts from a joint account
Naming the partner as beneficiary instead of yourself
Filling in the partner's health questions alone
Letting the contracts run on after a separation
Questions and answers
Frequently asked
Does a crosswise policy cost more?
No.
The premium depends on the insured person's age, health and cover, not on who pays.
Does it work if we are not married?
Yes,
and that is when it matters most, because unmarried partners only have a 20,000 euro allowance.
What if we both die at the same time?
Both policies pay and each payout goes into the estate of the deceased policyholder.
Name further beneficiaries, such as your children, in the contract or will.
Can I convert an existing policy?
Often yes, if the insurer agrees and your partner becomes policyholder.
Have the tax effect checked first.
Does my partner really have to sign?
Yes.
Without written consent, a contract on their life above funeral costs is invalid.
Does German tax apply if we are foreign citizens?
German inheritance tax depends mainly on where the deceased and the heir live, not on citizenship.
If either lives in Germany, plan as described here.
