Skip to content

Insurance broker / Insurance questions / Private pension

What is a net policy (Nettopolice) and is it worth it?

In short

What is a net policy (Nettopolice) and is it worth it? It is a German pension or life policy with no commission built in; you pay the adviser a separate fee instead. It is worth it mainly with high contributions and a long term. By comparison, a standard gross policy may charge up to 2.5 percent of total contributions as acquisition costs upfront.

What is a net policy (Nettopolice) and is it worth it?

What it costs

Figures from German law and guide values for fees.

ExampleTypical range
Maximum zillmer amount on EUR 72,000 total contributions (EUR 200 for 30 years)up to EUR 1,800, i.e. 25 per mille
Fee for advice and arranging a net policyabout EUR 1,000 to 3,000
Commission passed on via an insurance consultantup to 80 percent
Hourly rate of an insurance consultantabout EUR 100 to 250

As of October 2026.

Zillmer cap and pass through are set by law.

Fees and hourly rates are guide values from our quoting practice and are freely agreed.

Worked example

Private pension, EUR 200 a month, 30 years

Acquisition costs if the contract runs to the end and if it is cancelled after three years.

Total contributionsEUR 72,000
Gross policy, assumed 2.5 percent acquisition costsEUR 1,800
Net policy, assumed feeEUR 1,500
Cancelled after 3 years, gross (3 of 5 years)about EUR 1,080
Cancelled after 3 years, netup to EUR 1,500, per fee agreement

Over the full term the net policy saves about EUR 300 here; if cancelled early, the gross policy can be cheaper.

Net versus gross policy

In a normal gross policy (Bruttopolice) the intermediary is paid through your contributions, and acquisition costs are offset in the first years. A net policy leaves this cost out of the contract; you pay for advice directly.

Running admin and fund costs exist in both. A net policy only saves the commission, not all costs.

PointGross policyNet policy
Intermediary payinside the contributionseparate fee
Acquisition costs in the contractyes, offset in early yearsno
Cost if you cancel earlyspread over at least 5 yearsfee may be fully due
Running costsyesyes

When a net policy pays off

A net policy pays off when the saved commission is clearly higher than the fee. That is usually true for high monthly contributions, single premiums and long terms.

With small savings amounts the fee can eat up the saving. Then the net policy brings no advantage.

Cancelling early

For gross policies, § 169 VVG (Insurance Contract Act) requires acquisition costs to be spread over at least the first five years when you cancel. Leaving early means you bear only part of them.

The fee for a net policy is a separate contract. Whether it stays due when the net policy is cancelled depends on the fee agreement, so read that clause first.

Who sells net policies in Germany

Insurance consultants under § 34d (2) GewO may only be paid by the client. If they still arrange a gross tariff, the insurer must pass on up to 80 percent of the commission to you under § 48c VAG.

Norman Nammert works as an insurance broker (Versicherungsmakler). The insurer pays his commission (Courtage), so the service is free for you. We tell you openly which model is cheaper in your case.

Step by step

  1. Check how sure you are to pay until the end.
  2. Compare the effective costs (Effektivkosten) of both versions in the pre contract information.
  3. Set the fee against the saved commission.
  4. Read what the fee agreement says about cancellation.
  5. Then decide between net and gross.

Checklist

  • Effective costs of net and gross side by side
  • Fee in writing as a fixed amount
  • Rule for the fee on cancellation or paid up status
  • A term you can realistically keep
  • Running costs, not only acquisition costs

Common mistakes

  • Looking only at the missing commission and ignoring running costs
  • Signing a fee agreement without reading the cancellation clause
  • Choosing a net policy for a small savings rate

Questions and answers

Frequently asked

Is a net policy always cheaper?

No.

Only if the fee is below the saved commission and the contract runs long.

Early cancellation can reverse this.

Where do I find the costs of my policy?

In the pre contract information.

Under § 2 VVG-InfoV it must state the effective costs, the reduction in yield in percentage points.

Can I convert my gross policy into a net policy?

German law does not provide for this.

Whether an insurer offers a switch is its own decision.

Can a broker charge me a fee in Germany?

For consumers a broker is usually paid by the insurer.

§ 34d GewO allows brokers to give legal advice for a separate fee only to clients who are not

consumers.

Sources

NAMMERT insurance broker

Request a quote: Private pension

We compare insurers and come back to you, in English.

Free; the insurer pays our fee.

1Who is it for?
2Which insurance?

Choose as many as you like. For each one, the details an insurer needs for a quote appear below.

Personal

Business

3Details

Private pension insurance in Germany

For example a pension from your home country, a German company pension, how long you plan to stay

4Your current policy
5How can we reach you?

Related questions

Your broker: Norman Nammert, trading as NAMMERT.

Insurance broker licensed under section 34d(1) of the German Trade Regulation Act.

Broker register no. D-C08Q-TOSD4-37.

NAMMERT Assekuradeur GmbH is a separate company.

It does not arrange your contract.

Statutory disclosure (German) · Updated

Was this useful?