Life insurance that creates wealth

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An asset-building life insurance is a special sub-type of life insurance . In Germany it is based on the provisions of the Fifth Asset Creation Act (5th VermBG).

It exists when the following requirements are met:

  • The benefits from life insurance are limited to death and survival ( disability protection , among others, is not provided); the insurance is only offered without a health examination.
  • the minimum contractual term is 12 years (principle of the old tax privilege until 2004),
  • Payment of ongoing monthly contributions (no single contributions),
  • The surrender value is at least 50 percent of the premium amount paid at any time,
  • Profit shares are used to increase the sum insured,
  • Insurance contributions consist of capital-forming payments by the employer (plus, if applicable, the employee's own contributions).

The contractually relevant persons are interchangeable. The employee does not necessarily have to be a policyholder . Nor does he have to be the insured person or the beneficiary of the contract. Mixed life insurance or Termfix insurance, for example, can be considered as asset-building insurance.

With the exception of top executives, such as board members or managing directors of GmbHs, all employees can in principle receive capital-forming benefits.

Employee savings allowance

In the past, the employee savings allowance was granted on the contracts . According to transitional events, capital-building life insurance policies established since January 1, 1990 were no longer granted savings allowances. This also applied to contracts concluded in 1989 with ex nunc effect from 1990.

This form of insurance is hardly relevant any more today. Only employees who do not receive any subsidies, such as the employee savings allowance or the housing bonus, are still using this product today.