Anyone who becomes a parent during their studies rarely thinks about death first. Yet the question remains of how a child is financially secured if one parent suddenly drops out. A term life insurance (Risikolebensversicherung) can be a solution for this, but it does not suit every situation. This guide shows what it pays out, what it costs and when it is really worth it.
Short answer: A term life insurance pays an agreed sum to the beneficiaries only in the event of death. The premium depends on age, health, the sum insured and the term. Health questions must be answered truthfully (section 19 of the Insurance Contract Act, VVG). Example: 1,000 euros per month over 20 years results in a sum of 240,000 euros (assumption). Stand: October 2026.
The Most Important Points at a Glance
- A term life insurance pays out only in the event of death. If you survive the term, no money is paid back.
- The sum insured should be based on the actual needs of the family over the term, not on a flat amount.
- If you answer health questions incorrectly or incompletely, the insurer may withdraw from the contract (section 19 VVG).
- The premium rises with age and with health risks. A policy taken out at a young age is therefore often cheaper, but not automatically sensible.
- Before you take out a policy, consider whether other building blocks, such as disability insurance (Berufsunfähigkeitsversicherung), close a more important gap.
What Does a Term Life Insurance Actually Pay Out?
Term life insurance is the simplest form of life insurance. If you die during the term, it pays a sum fixed in advance to the person you name as beneficiary. There is no savings component. The term is fixed, and the premiums usually stay the same during that period, unless the tariff provides for an adjustment. That is why the premium is usually much lower than with classic life insurance, and the money works where it is needed in an emergency.
It is important to distinguish this from insurance that pays out in the event of illness or inability to work. A term life insurance does not help if you are ill for a long time or can no longer work. It protects only the surviving dependants in the event of death. Your ability to work is a different question, which falls under the area of disability insurance for students (in German).
How High Should the Sum Insured Be?
The sum should not be set by gut feeling. A useful approach is to ask how much money the family would need each month if one parent were no longer there, and for how long this need would last. Ongoing costs such as rent, living expenses and childcare count, as do the child’s training costs.
Assumption: The family would need an additional 1,000 euros a month in the event of death, and this need should be covered for 20 years. The sum insured would then be 1,000 euros times 12 months times 20 years, which equals 240,000 euros. This figure is only a thought model. Existing savings, assets, claims under the statutory pension insurance and survivor provision by a partner can reduce the need.
| Building block | What it covers | What it does not cover |
|---|---|---|
| Term life insurance | Death with the agreed sum paid to the beneficiaries | Illness, accidents without death, inability to work |
| Disability insurance (Berufsunfähigkeitsversicherung) | Loss of the ability to work through illness or accident | Death of the insured person |
| Statutory survivor benefits | Pensions only under certain conditions, for example where the deceased has periods of insurance | Reliable coverage of the entire need |
What Role Does the Duty of Maintenance Play?
Parents have a duty of maintenance towards their children. Under section 1601 BGB, relatives in the direct line are obliged to provide maintenance to one another. However, this does not mean that the surviving parent automatically takes on the full need. They only have to pay within the limits of their ability to pay, which is restricted by section 1603 BGB. With a low income during your studies, this limit is reached quickly.
Survivor pensions from the statutory pension insurance are only available under certain conditions, for example if the deceased parent has acquired periods of insurance. Whether and to what extent they apply is checked by the German Pension Insurance (Deutsche Rentenversicherung) on a case-by-case basis. You should not rely on these benefits alone.
What Happens With Health Questions?
The application contains questions about previous illnesses, treatments and medication. You must answer these truthfully before the contract is concluded, insofar as the insurer has asked about them (section 19, subsection 1 VVG). A breach may entitle the insurer to withdraw if it acted intentionally or with gross negligence. In the event of death, the cover might then no longer apply. For more on this, read the guide on health checks in private health insurance (PKV) (in German), because many questions are structured in a similar way.
In the case of pre-existing conditions, the insurer may refuse the application, accept it with an exclusion of benefits, or ask for a surcharge. Which route applies to you can only be determined by reviewing your documents individually. You can get a personal assessment of your situation as part of personal advice at Academycon (in German) before you sign an application.
When Is a Term Life Insurance Worth It, and When Not?
A term life insurance is especially sensible if a child or a family depends economically on one parent’s income and no other cover meets that need. During the study phase, income and assets are often low, which makes this protection especially important.
It is less suitable if the premium puts a heavy strain on your finances and other building blocks are more urgent. If you have a pre-existing health condition, check the acceptance conditions especially carefully. The term should also match the years in which the child actually needs to be protected, and not run beyond them.
Frequently Asked Questions
Does a term life insurance also pay out in the event of a serious illness?
No, it pays out only in the event of death. If someone has a serious illness without dying, no benefit is paid. Disability insurance or another form of cover is responsible for that, and you should check it separately.
Who should be named as beneficiary?
That depends on your family situation. Often the partner is named and, where agreed, the child. The nomination should be made in writing and reviewed regularly, for example after a separation or a move.
Can I increase the insurance later?
An increase is usually only possible through additional contracts or with a new health check. Many tariffs offer dynamic increases or guarantees of additional cover, which vary between providers. Read the conditions carefully.
Do I have to cancel the insurance if I drop out of my studies?
No, dropping out of your studies does not automatically end the contract. What matters is whether the family’s need continues. If the situation changes, the contract should be adjusted to the new circumstances before it runs unnecessarily.
What to Do Now
- Work out the monthly need of your family in the event of death and the period over which this need lasts.
- Check existing cover, such as employer benefits, savings or claims under the pension insurance.
- Answer the health questions completely and truthfully before you submit an application.
- Compare the offers by sum insured, term, beneficiary arrangements and conditions for adjustment.
- Have someone answer the question of whether disability insurance is more important first.
Related Reading
- Disability insurance for students: costs and start (in German)
- Insurance for students: the cover you really need (in German)
- Health insurance during your studies with a child (in German)
- Studying with a child: money, allowances and insurance (in German)
- Private health insurance and health checks: what you need to know (in German)
Sources: § 19 Insurance Contract Act (VVG): duty to disclose, gesetze-im-internet.de (Stand: October 2026, retrieved); § 1601 Civil Code (BGB): persons obliged to provide maintenance, gesetze-im-internet.de (Stand: October 2026, retrieved).
Stand: October 2026. This guide is general information, not individual advice.
