Changing or canceling life insurance

Changing or canceling life insurance: You should know these disadvantages

Financial losses due to early termination

Life insurance policies usually have a long term to which the insured is bound. If the contract is terminated before the end of this term, this will result in significant losses in terms of returns. If the insurance is canceled in the first few years of the contract term, the insured often does not even get the payments made up to that point. Because at the beginning of the contract, the conclusion and administration costs of the insurance are deducted from the deposits.

Disadvantages of switching

Changing a life insurance policy is often only worthwhile if the provider is changed shortly after the conclusion of the contract. Because then not all the closing costs have been paid. According to a calculation by Stiftung Warentest, switching to a better offer can still be worthwhile after two years , but this is no longer the case after five years. When changing, however, it should be noted that older contracts often have better interest rates than contracts of the newer generation.


Before purchasing life insurance, it makes sense to think carefully about the potential downsides as it is a long-term investment. An important disadvantage is a constantly falling return on classic capital life insurance. Find out about other forms of life insurance or retirement plans accordingly.

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