Who gets the money from a term life insurance policy in Germany?
In short
Who gets the money? In Germany, the person named as beneficiary in your term life insurance policy, paid directly and without a certificate of inheritance. If nobody is named, the money from the policy goes into the estate and is split by your will or by statutory shares. If you only wrote “spouse”, an ex-spouse usually still counts after a divorce.
Court fees for a certificate of inheritance when no beneficiary is named: one fee for the procedure and one for the sworn statement, both from fee table B.
Example
Typical range
Estate of 50,000 euros
about 330 euros
Estate of 110,000 euros
about 546 euros
Estate of 200,000 euros
about 870 euros
Estate of 500,000 euros
about 1,870 euros
Beneficiary named in the policy
0 euros, no Erbschein needed for the payout
Our own calculation from the fee table of the German Court and Notary Fees Act, as of October 2026.
The basis is the estate after debts.
If the court hears witnesses, a further fee may apply.
Worked example
Married father of two in Hamburg, 200,000 euros cover
He has no will and lives under the default German marital property regime. There are no other assets. We compare the policy without a beneficiary with the policy naming his wife.
No beneficiary: wife, a quarter plus a quarter for equalisation of gains
100,000 euros
No beneficiary: each child a quarter
50,000 euros each
No beneficiary: Erbschein on a 200,000 euro estate
about 870 euros
Wife named as beneficiary
200,000 euros straight to her, no Erbschein
Without a name, the wife gets only half, the other half belongs to the children, and payment often waits for the Erbschein. With her name in the policy, all of the money reaches her, and sooner.
The beneficiary in the contract comes first
As policyholder you decide who receives the death benefit. Germans call this the Bezugsrecht. The named person has a claim of their own against the insurer. The money bypasses the estate, so no certificate of inheritance (Erbschein) is needed to pay it out.
A will usually does not override this. Many policy terms require any change to be sent to the insurer in writing. If you only change your mind in your will, the old name in the policy may still win.
What the policy says
Who gets the money
one person by name
that person, no Erbschein needed
several names without shares
everyone in equal shares
several names with percentages
each their own percentage
“my heirs”
the heirs at the time of death, by inheritance share
“my spouse”
usually the spouse at the time the name was given
the beneficiary died first
the policyholder, which means the estate
nobody named
the estate, shared under the will or the law
Revocable or irrevocable
Unless agreed otherwise, you may name a beneficiary and later replace them without the insurer's consent (§ 159 (1) VVG). The named person only acquires the claim when you die. Until then they hold nothing more than an expectation.
An irrevocable beneficiary acquires the claim as soon as they are named (§ 159 (3) VVG). You can then only change it with their consent. Banks sometimes ask for this to secure a loan. For a family it is rarely necessary.
Divorce does not delete the old name
On 22 July 2015 the Federal Court of Justice ruled (IV ZR 437/14) that naming “the widowed spouse” normally refers to the person you were married to when you made the designation, even after divorce and remarriage. In that case the first, divorced wife received the money and the widow did not.
So write names, not roles, and tell the insurer about every separation, marriage and birth. A letter is enough. Ask for written confirmation and keep it with the policy.
No beneficiary: estate, Erbschein, delays
If nobody is named, the payout belongs to the policyholder. On a term life policy on your own life, that means it lands in your estate. There it is shared among the heirs, and creditors of the deceased can reach it.
The insurer then needs proof of who the heirs are and often asks for an Erbschein. That costs time and court fees. In a community of heirs, everyone has to agree before the money is shared out.
Who gets the money after tax
Even with a named beneficiary, the payout counts as an acquisition on death if the deceased was the policyholder (§ 3 (1) no. 4 of the Inheritance Tax Act). Spouses have 500,000 euros tax free, children 400,000 euros, unmarried partners only 20,000 euros.
Unmarried couples are often better off with crosswise policies: each insures the other's life and receives the money from their own contract. We are insurance brokers, not tax advisers, so please have large sums checked by a tax professional.
Step by step
Find the policy document and check who is named as beneficiary.
Replace roles such as “spouse” or “children” with names and dates of birth.
If you name several people, set their shares in percent.
Add a backup beneficiary in case the first one dies before you.
Send the change to the insurer in writing and keep the confirmation.
Check the name again after separation, marriage or a birth.
Checklist
Beneficiary named with full name
Shares set if there are several people
Backup beneficiary named
Name updated after the last separation or marriage
Insurer's confirmation filed with the policy
Your family knows which insurer holds the policy
Common mistakes
Changing the beneficiary only in your will and not with the insurer
Naming “spouse” and doing nothing after a divorce
Naming nobody and leaving your family to pay for an Erbschein
Not naming a backup in case both partners die at the same time
As an unmarried couple, naming your partner instead of insuring each other crosswise
Questions and answers
Frequently asked
Can I change the beneficiary at any time?
Yes, as long as the designation is revocable, which it is unless agreed otherwise.
A written notice to the insurer is enough, you do not need its consent.
Will my ex-wife get the money?
If she is still named, probably yes.
Even “spouse” is normally read as the person you were married to when you named her.
Change it after the divorce.
Is the payout part of the estate?
Not if a beneficiary is named, it goes straight to them.
For inheritance tax it still counts if the deceased was the policyholder.
What if my beneficiary dies before me?
They never acquire the claim, so it falls back to the policyholder and into the estate.
A backup beneficiary avoids this.
What happens if “my heirs” are named?
The heirs at the time of death receive the money by their inheritance shares.
Someone who disclaims the estate still keeps their share of the payout.
Can the deceased's creditors claim the money?
With a named beneficiary it belongs to that person, not to the estate.
Without one it falls into the estate, where creditors can reach it.
Who gets the money if the policy secures a mortgage?
Often the bank is named as beneficiary or the claim is assigned to it.
The bank then receives the outstanding loan,
and what is left depends on your agreement with the bank.
