(2023) Do I need term life insurance?

Term life insurance pays a previously agreed sum upon the death of the insured person, regardless of how much has been paid into the policy up to that point. However, if the insured person does not die during the term, they will not receive any money back at the end, unlike with endowment life insurance.

Statutory pension provision for surviving dependants is low. The full widow's or widower's pension amounts to only 55 per cent of the pension calculated up to that point due to full incapacity for work. However, surviving dependants are only entitled to this pension after an insurance period of five years, and it always only represents a portion of the pension entitlements accrued by the deceased up to that point.

Term life insurance is particularly useful for young families who still need to finance their children's education. Couples who are under significant financial strain, for example due to building or buying a property, should also secure against the risk of death. The policy is unnecessary for those who have no dependants to support, such as singles, trainees, and students.