Life insurance costs a lot and often bring little. But before you cancel, you should know these ways out. So they get more for themselves – without making expensive mistakes.
There are over 80 million life insurance contracts in Germany – statistically speaking, almost every German citizen has a contract. For decades, the product was considered decisive for old -age provision. However, there may be cases in which you need bound money earlier in the contract. Or they are dissatisfied with the contract, the costs or return. Is then a termination worth it? The answer is not so easy – and depends on many factors. Here you can find out which these are and what alternatives are available for termination.
Life insurance is a long -term contract that later secures you or your bereaved a one -time payment or a pension. You will pay contributions regularly for decades. The insurance pays the money when you die, retire or another agreed time has been reached. Read here: life insurance in the fact check and when it is worth it.
A distinction is made between two types:
- Classic capital -forming life insurance: Here the insurer secures your contributions safely, pays you a guaranteed interest and participates in possible profits (the so -called surpluses).
- Fund -bound life insurance: Here your contributions flow mainly into investment funds. The goal is to achieve higher returns. But be careful: there is no guaranteed payout. Their payment depends entirely on the development of the funds. There are variants with a minimum guarantee or guarantee funds, but the risks remain higher than with classic contracts.
Many people have taken out such insurance companies to provide for old age. But today they are often considered unattractive, especially fund -bound and newer contracts. The reason: too high costs, too low guarantee interest and little return. A closer look is always worthwhile – because with old contracts with high guarantee interest, it can make sense to continue.
You can cancel your life insurance at any time at the end of the current insurance period. The deadline for this is usually a month, but depends on your contract. Therefore, take a look at your contract documents or ask your insurance company.
The termination works simply: an informal writing is sufficient. It is best to send it to the insurance company by entering the insert so that you have evidence.
After the termination, the so -called surrender value will be communicated to you. This is the amount the insurer pays you. ATTENTION: The surrender value is often below the contributions paid, especially if you cancel the contract in the first few years. Among other things, the insurer withdraws these costs:
- Final and sales costs
- Cancellation
The development of the funds also plays a role: if their funds have done poorly, the surrender value is even lower.
Especially old contracts that were concluded before 2005 should not be dismissed prematurely. Because the withdrawals for retirement are tax -free under certain conditions and contributions were comparatively well received. Up to 2000, the guaranteed interest rate was 4 percent – it is currently 1 percent. Also read: Will life insurance be attractive again with increasing guarantee interest?
A termination will bring you money immediately, but usually less than you have paid. Loss is often high, especially in the early years. Reason: A large part of the final and sales costs will be retained by the insurer in the first years of a contract. So if you sell or cancel very early, you have hardly built any savings credit because it was primarily used to cover these costs.
However, the termination often does not pay off even with old contracts with high guaranteed interest. Because in times of low interest rates it is difficult to achieve a comparably safe return.
So whether a termination is really worth it depends on several questions:
- How high is the surrender value?
- How high would the guaranteed start -up performance be with further payment?
- Can you create the money paid out safer and better?
Good to know: termination does not have to be the only solution to get rid of life insurance. It is often better not to quit. There are numerous ways to adapt your contract to your needs without giving it up right away.
If you have recently concluded your contract, you have a 30-day right of withdrawal. That means: You can undo the contract as if it had never existed. You will receive all paid contributions completely back. The deadline begins a day after receipt of the insurance policy and the other contract documents. Of course, this option is only something for fresh contracts, but the most elegant solution – completely without losses.
