Anyone who takes out term life insurance protects their family in the event of their own death. You can claim the premiums as a tax deduction.
Term life insurance is suitable for anyone who cares for others and wants to provide them with financial security after their death. This applies in particular to families and single parents, but the insurance can also be useful for unmarried couples (more on this here). You then pay monthly contributions, which you can share with the tax office. We’ll show you how.
Yes, you can generally claim contributions for term life insurance as a tax deduction. The payments are part of the pension expenses and can therefore be deducted as special expenses. However, there are maximum amounts for pension expenses.
Employees can declare a maximum of 1,900 euros per person per year in their tax return, while self-employed people can declare up to 2,800 euros per person per year. And: These maximum amounts apply to all pension insurance policies. This means that the premiums for your term life insurance may not even have a tax-reducing effect. Because, as a rule, the contributions to health and nursing care insurance alone are already above the maximum amount.
However, since tax rules can change, it is still advisable to always enter all pension expenses in your tax return. This way, you are on the safe side.
Premiums for term life insurance are considered special expenses. You enter them in the pension expenses section of your income tax return. This is intended for pension expenses, but also for insurance.
If survivors receive the agreed death benefit, they do not have to pay capital gains tax on it, but may have to pay inheritance tax. However, depending on the degree of relationship, high allowances apply. Read here how much you can inherit tax-free.
