Lebensversicherung, literally translated as “life insurance” in English, is a financial product designed to provide financial security to the insured’s beneficiaries upon their death or at a specified point in time during their life.
What is “Lebensversicherung”?
Lebensversicherung is a type of insurance policy in Germany that pays out a sum of money either upon the death of the insured person or after a set period. It serves as a financial safety net for the insured’s family or beneficiaries, ensuring they are not left in financial difficulty due to the loss of income previously provided by the insured. In Germany, life insurance can also be used as a form of savings or investment, where a portion of the premiums paid into the policy accumulates a cash value[1][2].
More information about “Lebensversicherung”
There are various forms of Lebensversicherung, including term life insurance (Risikolebensversicherung), which provides coverage for a specified term and pays out only if the insured dies during that term, and whole life insurance (Kapitallebensversicherung), which combines a death benefit with a savings component. Additionally, there are unit-linked life insurance policies (fondsgebundene Lebensversicherung) where the payout is linked to the performance of investment funds[1][2][5]. These policies can be tailored to meet the specific financial goals and needs of individuals, such as providing for family members, covering funeral expenses, or serving as collateral for a loan.
Related to “Lebensversicherung”
Here are some additional terms that are related to Lebensversicherung:
- Risikolebensversicherung: A term life insurance policy that provides coverage for a predetermined period and pays out only if the insured dies within that term[2][3].
- Kapitallebensversicherung: A whole life insurance policy that includes a savings component, accumulating cash value over time[1][9].
- Fondsgebundene Lebensversicherung: A unit-linked life insurance policy where the payout is linked to the performance of investment funds[1][5].
Lebensversicherung plays a crucial role in financial planning, offering both protection and investment opportunities to individuals in Germany.