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When does term life insurance not pay out in Germany?

In short

When does term life insurance (Risikolebensversicherung) not pay out in Germany? If health questions were answered wrongly, for suicide in the first three years, for an unpaid premium after a reminder and for death after the term ends. The insurer can review wrong answers for five years, for intent or fraud for ten. Answer honestly and pay on time, and few gaps remain.

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When does term life insurance not pay out in Germany?

What it costs

What honest answers cost: premium examples for non-smokers and smokers from published calculations.

Example	Typical range
Age 30, non-smoker, EUR 250,000	about EUR 8 to 12 a month
Age 45, non-smoker, EUR 250,000	about EUR 25 to 40 a month
Age 30, smoker, EUR 250,000	about two to three times as much, about EUR 16 to 36 a month
Surcharge for a pre-existing condition instead of refusal	guide value from our quoting practice: often 25 to 100 percent on the premium

As of October 2026.

The non-smoker premiums come from a published example, the smoker premium is calculated from it with the factor given.

The surcharge for pre-existing conditions is a guide value from our quoting practice.

Your premium depends on age, health, occupation and term.

Worked example

High blood pressure not disclosed, two different causes of death

A 40 year old takes out term life insurance for EUR 250,000 in 2023. He does not mention his treated high blood pressure because he thinks it is harmless. The example assumes death three years later. Whether the insurer would have accepted him with a surcharge or not at all also matters.

Fault	gross negligence, not fraud
Death from heart attack, insurer would have refused	withdrawal, fact caused the death: EUR 0
Death from heart attack, insurer would have accepted with surcharge	contract adjusted retroactively: EUR 250,000, the higher premium is claimed back
Death in a road accident	fact did not cause the death, payment EUR 250,000
Same case, left out on purpose to save premium	fraud, no payment whatever the cause of death
Same case, death after six years, no intent	five year deadline expired, payment EUR 250,000

With honest answers the family would have received EUR 250,000 in every case, at worst against a premium surcharge. Leaving it out can cost the whole sum if the illness contributes to the death or deception is involved.

The reasons at a glance

Term life insurance has few exclusions. Most refusals have to do with the application, not with the cause of death. Accident, illness, heart attack or cancer are covered whenever they happen, as long as the contract is running and the answers were correct.

The rules come from the German Insurance Contract Act (Versicherungsvertragsgesetz, VVG). The table shows when the insurer does not have to pay or may pay less, and which deadlines apply.

Reason	Consequence	Deadline
Health question answered wrongly through slight negligence	cancellation or adjusted contract, no withdrawal	five years
Health question answered wrongly through gross negligence	withdrawal or adjustment; payment remains if the fact did not cause the death	five years
Knowingly wrong answers	withdrawal, no payment if the fact caused the death	ten years
Fraud, meaning deliberate deception	no payment, even without a link to the cause of death	ten years
Suicide	no death benefit, only any surrender value	three years from signing, can be extended in the contract
Renewal premium unpaid despite reminder	no cover after the payment deadline	at least two weeks
Killing by the beneficiary	the beneficiary designation counts as not made	none
Death after the end of the term	no payment	end date set in the contract
Exclusions in the terms	such as active part in wars or use of nuclear, biological or chemical weapons	depending on the terms

Wrong health answers

Before signing, the insurer asks in writing about illnesses, treatment, medication, weight and smoking. You must disclose everything asked that you know about, including treatment received outside Germany. You need not mention things that are not asked. The insurer may only rely on its rights if it warned you separately in writing about the consequences beforehand.

How harsh the consequence is depends on fault. For slight negligence the insurer can only cancel or adjust the contract, for example with a surcharge. For gross negligence it may withdraw if it would not have signed at all with the facts known; if it would have accepted with a surcharge, the contract is only adjusted. With intent and fraud the contract is gone. The insurer must use its rights within one month of finding out.

The link to the death counts

If the insurer withdraws after a death, it must still pay if the undisclosed fact has nothing to do with the death. If someone did not mention treated high blood pressure and dies in a road accident, the family receives the sum.

Fraud is different. If you deliberately deceive the insurer, you lose cover whatever the cause of death. That is why it never pays to leave out an illness to get a lower premium.

Smokers and non-smokers

Smokers pay about two to three times as much. If you insure yourself as a non-smoker while smoking, you breach your duty of disclosure. Many insurers check medical records and lab results after a death. E-cigarettes and occasional smoking count as smoking under many terms.

If you start smoking after signing, you usually do not have to report it unless the terms say otherwise. Read your terms carefully on this.

Premium not paid

If a regular premium is unpaid, the insurer must send a written reminder and set a deadline of at least two weeks. If the insured person dies after that deadline with the premium still open, it does not pay. It can then also cancel the contract.

If you pay within one month of the cancellation, the cancellation is void. But there is no cover for a death in the meantime. If money is tight, agree a premium break or a lower sum instead. Keep your address and bank details up to date, especially when moving abroad.

When you do not need the policy at all

Term life insurance protects people who depend on your income, or a loan. If you support nobody, have no debts or own enough assets, you do not need it. Then there is also no point worrying about exclusions.

Step by step

Before applying, ask your health insurer for a list of doctor visits and diagnoses of recent years.
Answer every health question fully and literally; if in doubt, disclose more.
With pre-existing conditions, have an anonymous risk enquiry made first.
State your smoker status honestly, e-cigarettes included.
Keep a copy of the application with all answers.
Set up a direct debit and report a change of bank account at once.
Tell your dependants where the policy and application are kept.

Checklist

All health questions answered fully
Copy of the application filed
Smoker status stated correctly
Premium by direct debit, account up to date
Term matches the loan and the children's ages
Beneficiary checked and current
Terms on suicide and exclusions read

Common mistakes

Leaving out an illness because it seems harmless
Insuring yourself as a non-smoker and smoking now and then
Missing reminders because they go to an old address
Choosing a term that is too short, so cover ends before the loan does
Not keeping a copy of your answers and being unable to prove what you disclosed

Questions and answers

Frequently asked

Does term life insurance pay for suicide?

Not in the first three years after signing, afterwards yes. It also pays in the first three years if the act happened in a state of mental disorder that ruled out free will.

How long can the insurer check for wrong answers?

Five years after signing, ten years for intentionally or fraudulently wrong answers. If the death occurred within that period, the deadline does not apply to it.

Does it pay for an accident abroad?

Yes, cover usually applies worldwide. The terms set out exceptions, for example for war zones.

Do I have to disclose treatment I had in my home country?

Yes. Health questions cover all treatment within the period asked, wherever it took place. Gather records from abroad before applying.

What if I forgot to mention an illness?

Report it at once. For slight negligence the insurer can only cancel or adjust, and correcting it yourself puts you in a much better position than after a death.

Does the insurer pay with dangerous hobbies?

If you were asked and disclosed them, yes. Hidden hobbies such as diving or skydiving breach the duty of disclosure just like an illness.

Do the heirs get anything if the term has ended?

No. Term life insurance only pays for death during the term. Premiums paid are not refunded.