The holder of the policy specifies to whom the insured death benefit or the insurance savings payable when the policy expires shall be paid. The holder of the policy can specify any person, company or other entity as the beneficiary.
How is a beneficiary clause specified and how can it be changed?
The beneficiary clause can be specified by notifying the insurance company in writing or through the web service following authentication.
The beneficiary clause cannot be specified in a will.
The beneficiary clause can be changed by notifying the insurance company in writing of the new beneficiary clause or by specifying a new beneficiary clause through the web service following authentication. The beneficiary clause cannot be changed with a will.
Clause for exclusion of marital rights
The spouse of the benefit recipient has the marital right to the benefit paid under the insurance, unless the spouse's marital right has been excluded by way of a prenuptial agreement or will.
The marital right of the benefit recipient's (e.g. one's own child's) spouse to the benefit paid under the insurance can also be excluded when specifying the beneficiary clause.
This clause that excludes the marital right of the benefit recipient's spouse can also be added to the insurance later at any given time.
Investment insurance taken out by a trustee
A trustee can take out investment insurance on behalf of the person under trusteeship without the local register office's permission.
The person under trusteeship is designated as the policyholder and the beneficiary of the savings. All local register offices accept an estate as the beneficiary of the death benefit.
Taxation of life insurance compensation
Life insurance compensation paid to next of kin on the basis of a death is subject to inheritance tax. The highest tax rate applied is 19 %.
Next of kin are, for example, a spouse, children, grandchildren and parents. Compensation paid to a cohabitant is also subject to inheritance tax if the couple have lived together and have or have had a mutual child, or if they were previously married to one another.
Life insurance compensation paid to a beneficiary other than next of kin is subject to capital gains tax.