Life insurance is a type of insurance in the Netherlands that you can take out to protect your family and loved ones from financial hardship in the event of your death. However, there are also other reasons why you might want to take out a life insurance policy.
Life insurance companies in the Netherlands
The following companies offer expat-friendly life insurance policies in the Netherlands:
What is life insurance?
Life insurance is a type of insurance that insures someone’s life, either your own or someone else’s. When the insured person passes away, a pre-agreed amount of money is paid out to one or more beneficiaries.
The types of life insurance available in the Netherlands
There are two main types of life insurance in the Netherlands:
- Term life insurance (overlijdensrisicoverzekering)
- Funeral insurance (uitvaartverzekering)
Term life insurance (overlijdensrisicoverzekering)
In the Netherlands, you take out term life insurance for a set period of time. If the insured person dies during this period, a pre-agreed sum will be paid out to their beneficiaries. They may decide for themselves what to spend this money on. However, it is generally intended to cover the cost of a mortgage, loss of salary, the children’s education, or other fixed costs.
You can choose the term (length) of the insurance policy. During this term, you will pay a monthly or annual premium. Make sure you think carefully about the length of the term, as the insurance company will not pay out if the insured doesn’t die within the set term.
You can take out term life insurance for someone aged between 18 and 65. The term may run no later than the day before the insured person reaches the age of 75.
Taking out term life insurance with your mortgage
Many people in the Netherlands take out term life insurance when they get a mortgage. This means that it is linked to the mortgage and - in case you die before the mortgage has been paid off - your mortgage provider will receive the insured amount. This will then pay off all or part of your mortgage, ensuring that a surviving relative or partner can continue to pay for and live in the house.
Funeral insurance (Uitvaartverzekering)
Funeral insurance is, as the name suggests, a type of insurance that will ensure your family and/or loved ones will be able to pay for your funeral. The amount that is paid out by the insurance company is used for preparing and arranging the funeral and paying for the cremation or burial.
Of course, the money received from a term life insurance policy can also be used to arrange a funeral.
What are the differences between term life insurance and funeral insurance?
If you are not sure what type of life insurance to get, here is an overview of the key differences between term life insurance and funeral insurance in the Netherlands:
When do you take out life insurance in the Netherlands?
Unlike some types of insurance, like health insurance, having life insurance is not compulsory in the Netherlands. But it’s a good idea to take out life insurance if you are worried that your family will experience financial hardship should you die unexpectedly.
However, this is not the only reason someone might want or need life insurance. For instance, If you have bought a house with a mortgage, some mortgage providers will require you to have life insurance, to ensure the mortgage will still be paid in the event of your death.
Taking out life insurance is also a good idea if you own your own business with a business partner who would struggle in the event of your death.
How to take out a life insurance policy in the Netherlands
Taking out a life insurance policy in the Netherlands is relatively simple. It can often be done online. It’s a good idea to first compare different insurance companies and the policies they offer. Once you have chosen your insurance provider and policy, you will need to answer a questionnaire about your health. After completing this questionnaire, provisional coverage will take effect.
Please note that if you are 50 years or older, a medical examination by a doctor may be required.
How much does life insurance in the Netherlands cost?
The cost of life insurance in the Netherlands depends on a few things:
- The type of life insurance
- The length of the insurance policy
- The age and health of the insured (people who do not smoke often benefit from lower premiums)
You can take out life insurance for a few euros per month. Generally, the longer the term, the more expensive the policy.
Are you a beneficiary? Please note that sometimes you will need to pay taxes on the paid out amount.
How to cancel life insurance in the Netherlands
Cancelling life insurance before the end date of your policy is not always possible or a good idea financially. In fact, it may even end up affecting your taxes. So, make sure you know the rules regarding cancelling your insurance policy before you take one out. Especially since the requirements for cancelling life insurance may differ per insurance company and the type of life insurance you take out.