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Selling your life insurance policy
With over 90 million contracts, life insurance is still the most popular instrument for retirement plans in Germany. However, every other policy is canceled before maturity. This happens for various reasons. Endowment policies are designed for private pension plans and have an average duration of 28 years.But who can predict what will happen over such a long time? Personal circumstances change: being made redundant, building a house or getting divorced - situations that may arise suddenly and require financial resources. Many consumers are then confronted with the question of what they can and should do with their life insurance. In most cases, the insured persons still decide to cancel the policy and accept the surrender value guaranteed by the insurance company - definitely not the best solution!
Since 1999 consumers in Germany too have had the option of selling their policies to a third party on the so-called secondary market.
Since 1999 consumers in Germany too have had the option of selling their policies to a third party on the so-called secondary market.
The secondary market offers German consumers a true alternative to canceling their endowment or pension insurance. Buyers like Life Bond reuse policies in a yield oriented way.
Usually they take over the payment an, when the policy matures, receive the lump sum deriving from the insurance. In return, you as the seller will achieve a prive above the - often low - surrender value offered by the insurance company.
Usually they take over the payment an, when the policy matures, receive the lump sum deriving from the insurance. In return, you as the seller will achieve a prive above the - often low - surrender value offered by the insurance company.
In most cases, death coverage with an increase option continues. This would not happen if the policy was canceled. So if the insured person dies before the policy matures, the buyer pays a death benefit to the bereaved, less all costs incurred.- Higher payment if the policy is sold instead of canceled
- Usually the customer receives minimum death coverage with an increase option
- Quick and easy settlement
- Immediate payout of the full purchase price
- Settlement via an escrow account possible
- The highest standard of data and transaction security
You have decided to request a non-binding, free quote from Life Bond for the sale of your life insurance? No problem - just a few easy steps and you are on your way! Firstly, check and see if your policy matches Life Bond`s purchase criteria:
- It is either an endowment or a pension insurance policy issued by a German insurance company
- The current surrender value is at least €5,000
- Any time to maturity is possible (individual case-by-case assessment)
- It is not an existing or former direct insurance policy from a company pension scheme
- The applicant has to be a private individual of at least 18 years of age residing in Germany
If this is true for your policy, contact us! Our experts would be delighted to coordinate further steps with you.
Team Policen Deutschland
Life Bond Lebensversicherungshandelsgesellschaft mbH
Münchner Str. 54 82069 Hohenschäftlarn
Take a look at our sample calculations*. You will be surprised to see how much added value you can generate by selling your endowment or pension insurance to Life Bond.
| Example 1 |
Surrender to insurance company |
Sale via Life Bond |
| Surrender value / purchase price | €176,891.95 | €175,000.00 |
| Capital yields tax and solidarity surcharge | €10,158.75 | €2,415.90** |
| Payout to insured person | €166,733.20 | €172,584.10 |
| Your advantage | €5,850.90 |
| Example 2 | Surrender to insurance company | Sale via Life Bond |
| Surrender Value / purchase price | €88,910.00 | €93,452.00 |
| Capital yields tax and solidarity surcharge | €0.00 | €0.00 |
| Payout to insured person | €88,910.00 | €93,452.00 |
| Your advantage | €4,542.00 |
*All examples presented here are for orientation purposes only. The calculation of a purchase price depends on individual features such as insurance premiums, duration, insurance company etc. and on the figures confirmed by the insurance company. In individual cases, values may vary considerably. We would be delighted to calculate your individual benefit for you.
** As the seller, you pay the taxes yourself, and only after declaring the revenue in your personal income tax return. In order to accomodate your personal tax situation we recommend you seek advice on your decision from a tax consultant.
To calculate your non-binding, free quote, we will need the following documents:
- A copy of the original policy including all endorsements (not the terms and conditions)
- A valid authorization, signed by the insured person (otherwise we are not allowed to request data from the insurance company!)
- The completed customer questionnaire
The forms are available at
Life Bond will take care for all the further steps for you - quickly, simply and reliably.
We look forward to hearing from you!
