Death Benefit and Funeral Insurance in Germany — What Applies in 2026?

Introduction

We understand that you are dealing with a subject that is not easy to face. Whether you have recently lost a family member and are searching for financial support, or whether you are planning ahead for your own funeral — in both cases, the term "death benefit" (Sterbegeld) frequently arises. And in both cases, many people encounter an unwelcome surprise.

The statutory death benefit (Sterbegeld) that health insurance funds once paid as a contribution towards funeral costs has not existed since 2004. This fact remains unknown to many people even today. Those who search for "Sterbegeld Krankenkasse" on Google find outdated information or are quickly directed towards private funeral insurance products (Sterbegeldversicherung) — often without a clear distinction between the former government benefit and the private insurance products.

In this article, we explain precisely what has changed, which groups of people in Germany still receive a death benefit, whether funeral insurance (Sterbegeldversicherung) is worthwhile for your situation, and what alternatives exist. We provide this information impartially and without any sales intent — because in such a personal matter, you deserve an honest assessment.

The average funeral costs in Germany in 2026 range between 7,000 and 13,000 EUR. This makes it all the more important to consider the various pre-planning options at an early stage. In addition to financial planning, an increasing number of people are choosing to preserve their memories during their lifetime on a digital memorial page — a gift to the family that endures across generations.

Does the Death Benefit Still Exist in Germany?

The statutory death benefit (Sterbegeld) paid by health insurance funds was abolished on 1 January 2004 through the GKV Modernisation Act (GKV-Modernisierungsgesetz). Since then, neither statutory nor private health insurers pay a death benefit to bereaved families. Anyone searching today for "Sterbegeld Krankenkasse" is looking for a benefit that has not existed for over 20 years.

The History of the Death Benefit (Sterbegeld)

Until the end of 2003, members of the statutory health insurance scheme were entitled to a death benefit as a contribution towards funeral costs. The final amounts were:

• 525 EUR upon the death of an insured member
• 262.50 EUR upon the death of a family-insured dependant

These amounts covered only a fraction of the actual funeral costs even at that time. When health insurance benefits were cut as part of the healthcare reform, the death benefit was among the first services to be eliminated.

Why Are So Many People Unaware of This?

Although the abolition took place over 20 years ago, the subject continues to be surrounded by misconceptions. Many bereaved families only learn upon a death in the family that no death benefit is paid any longer. This is partly because the term "Sterbegeld" continues to exist — albeit in a completely different context, namely as the name for private insurance products (funeral insurance, or Sterbegeldversicherung) and as a benefit for certain occupational groups.

Who Is Still Entitled to a Death Benefit?

Although the statutory death benefit for health insurance members no longer exists, certain groups of people continue to receive a death benefit (Sterbegeld). These are occupational benefits rather than general insurance benefits. The amounts and eligibility requirements differ considerably depending on the group.

Civil Servants (Beamtenversorgungsgesetz)

Federal civil servants (Bundesbeamte) and civil servants in most federal states (Landesbeamte) are entitled to a death benefit under the Civil Service Pensions Act (Beamtenversorgungsgesetz, Section 18 BeamtVG). The amount is twice the last monthly salary (for active civil servants) or twice the retirement pension (for retired civil servants). The payment is made to the surviving spouse or children.

Since the specific sum depends on the individual salary, it varies considerably. For a civil servant at salary grade A13 (Studienrat, equivalent to a senior teacher), the death benefit amounts to approximately 10,000 to 12,000 EUR.

Public Sector Employees (Collective Agreement)

Public sector employees covered by collective agreements may also receive a death benefit, depending on the specific agreement and employer. Under the TVoeD (collective agreement for the public sector), however, this is no longer uniformly regulated. Whether an entitlement exists depends on the specific employment contract and supplementary arrangements.

Employer Liability Insurance Associations (Berufsgenossenschaft) — Workplace Accident or Occupational Disease

If an employee dies as a result of a workplace accident or a recognised occupational disease, the responsible employer liability insurance association (Berufsgenossenschaft) pays a death benefit under Section 64 of the Social Code Book VII (SGB VII). The amount is one seventh of the annual reference value for social insurance. For 2026, based on a reference value of 47,460 EUR, this results in a death benefit of 6,780 EUR. In addition, the costs of transferring the remains are covered.

Private Accident Insurance

Many private accident insurance policies include a death benefit that is paid to the bereaved in the event of an accidental death. However, this is tied to the cause of death being an accident and does not apply in cases of death from illness or old age.

Overview: Who Still Receives a Death Benefit?

For the vast majority of the population, therefore, no death benefit exists any longer. If you do not belong to one of the groups listed above, the funeral costs must be borne from the estate, by relatives or through private pre-planning. For families in financial hardship, there is the option of a social welfare funeral (Sozialbestattung).

What Is Funeral Insurance (Sterbegeldversicherung)?

Funeral insurance (Sterbegeldversicherung) is a private whole-of-life insurance policy specifically designed to cover funeral costs. It has nothing to do with the former statutory death benefit — although the similar name frequently leads to confusion. The insured sum is paid to the designated beneficiaries upon the policyholder's death.

How Does It Work?

The principle is straightforward: you pay monthly premiums until an agreed end age (typically 85) or for life. Upon death, the agreed insured sum — typically between 5,000 and 15,000 EUR — is paid to the person named in the policy.

Typical features:

• Insured sum: 3,000 to 25,000 EUR, depending on the provider and tariff
• Monthly premiums: approximately 15 to 60 EUR, depending on the entry age and insured sum
• Waiting period: For tariffs without a health assessment, usually 6 to 36 months — if the policyholder dies during this period, only the premiums paid (sometimes with a surcharge) are refunded
• Health assessment: Tariffs with health questions often have no waiting period but are not available to everyone
• Payout: To the beneficiaries named in the policy, typically within a few days

Example: Monthly Costs by Entry Age

Note: Exact premiums vary considerably depending on the provider, tariff and health status. Figures are provided as a guide, as of March 2026.

Is Funeral Insurance Worthwhile?

Funeral insurance (Sterbegeldversicherung) is a contested product among consumer protection advocates. The consumer advice centre in Hamburg (Verbraucherzentrale Hamburg) describes it as "not a comfortable safety net" and points out that policyholders in many cases pay more in premiums than is paid out upon death. There is no blanket answer to whether the insurance is worthwhile — it depends on your age, your health and your financial circumstances.

Advantages

• Guaranteed payout: Regardless of when death occurs (after the waiting period has expired), the full insured sum is paid
• No purpose restriction: The beneficiaries may use the money freely
• Available partly without a health assessment: Persons with pre-existing conditions can obtain cover through tariffs with a waiting period
• Relief for the family: The family does not need to raise large sums at short notice
• Protected assets (Schonvermoegen): Funeral insurance is generally protected from claims by the social welfare authority (unlike a savings account)

Disadvantages

• Premiums can exceed the insured sum: A person who takes out a policy at age 65 and lives to 90 may have paid more in premiums than is paid out
• Waiting period: Tariffs without a health assessment typically have a waiting period of 6 to 36 months
• No returns: Unlike a fixed-term deposit account, funeral insurance generates little or no interest
• Opaque costs: Acquisition and administration fees are often not apparent at first glance
• Cancellation is disadvantageous: In the event of early cancellation, the surrender value is often significantly lower than the total premiums paid

Comparison: Funeral Insurance vs. Alternatives

For Whom Can Funeral Insurance Be Worthwhile?

• Persons between 40 and 55: The younger you are when you begin, the more favourable the ratio between premiums paid and the insured sum
• Persons with pre-existing conditions who cannot obtain other forms of insurance cover
• Persons receiving basic income support (Grundsicherung) who wish to protect their funeral funds from social welfare authority claims

For Whom Is It Less Likely to Be Worthwhile?

• Persons aged 65 and above, when a high insured sum is selected — there is a considerable probability that the total premiums will exceed the payout
• Persons with sufficient savings who can place the money in a purpose-bound trust account
• Persons who already hold a term life insurance policy or other death cover

Alternatives to Funeral Insurance

In addition to funeral insurance (Sterbegeldversicherung), there are several ways to provide financial cover for funeral costs. Each alternative has its own advantages and disadvantages, and the right choice depends on your personal circumstances. Below, we present the most important options.

Funeral Pre-Planning Contract with a Funeral Director (Bestattungsvorsorgevertrag)

A funeral pre-planning contract (Bestattungsvorsorgevertrag) is a written agreement with a funeral director in which you specify the type, scope and costs of your funeral during your lifetime. Payment is made as a lump sum or in instalments.

Advantages:

• You determine precisely which services are to be provided
• The funeral director is contractually bound to carry out your wishes
• In combination with a trust account: protection from social welfare authority claims

Disadvantage: If the funeral company becomes insolvent, the money may be lost — unless it is secured in a trust account.

Trust Account (Bestattungsvorsorge Treuhand)

With a funeral pre-planning trust account (Bestattungsvorsorge-Treuhandkonto), the money is not transferred directly to the funeral director but is paid into a purpose-bound account held by a trust company (such as the Deutsche Bestattungsvorsorge Treuhand AG). Only upon death is the money released to the contractually designated funeral director.

This is the option most frequently recommended by consumer protection advocates, as it combines the advantages of purpose restriction with protection against the insolvency of the funeral director.

Term Life Insurance (Risikolebensversicherung)

A term life insurance policy (Risikolebensversicherung) pays an agreed sum to the bereaved if the insured person dies within the policy term. It is generally considerably cheaper than funeral insurance but covers only a defined period (for example, 10 or 20 years). For younger families with children, it is often the more sensible form of cover, as it can compensate not only for funeral costs but also for the loss of income.

Personal Savings (Sparkonto)

The simplest option: you regularly set aside money in a separate savings account or instant access account. This is the most flexible solution but has one decisive disadvantage — the money counts as assessable assets. If you apply for social welfare benefits or basic income support (Grundsicherung) in later life, the social welfare authority may access this account before approving benefits.

In addition to financial pre-planning, it is also worthwhile to think about remembrance. An increasing number of families today create a digital memorial page to preserve photographs, stories and shared memories for future generations — regardless of the type or location of the funeral.

Overview: Deducting Funeral Costs from Taxes

Regardless of the pre-planning option you choose, you should be aware that funeral costs may, under certain conditions, be deducted from your taxes as an extraordinary financial burden (aussergewoehnliche Belastung). Full details can be found in our article Deducting funeral costs from your taxes.

Frequently Asked Questions

Does the health insurance fund still pay a death benefit in Germany?

No. The statutory death benefit (Sterbegeld) paid by health insurance funds was fully abolished on 1 January 2004 through the GKV Modernisation Act (GKV-Modernisierungsgesetz). Neither statutory nor private health insurers pay a death benefit any longer. The final amounts were 525 EUR for insured members and 262.50 EUR for family-insured dependants. Bereaved families must now cover funeral costs from the estate, personal savings or private pre-planning arrangements.

How much does funeral insurance cost per month in Germany?

Monthly premiums depend heavily on the age at entry and the desired insured sum. At an entry age of 50 with an insured sum of 10,000 EUR, expect approximately 30 to 45 EUR per month. From an entry age of 65, premiums rise to 55 to 90 EUR and beyond. The younger you are when you take out the policy, the lower the premiums — though you will also pay over a longer period.

At what age is funeral insurance worthwhile in Germany?

From a financial perspective, funeral insurance (Sterbegeldversicherung) is most worthwhile for persons between 40 and 55 years of age. At this age, premiums are still moderate and the ratio between total payments and insured sum is favourable. From age 60 or 65, it becomes increasingly difficult, as the total premiums paid can quickly exceed the insured sum. The consumer advice centre (Verbraucherzentrale) advises against taking out such insurance in retirement.

What is the difference between funeral insurance and a funeral pre-planning contract?

Funeral insurance (Sterbegeldversicherung) is an insurance product: you pay monthly premiums and, upon death, the agreed sum is paid out — regardless of how the money is used. A funeral pre-planning contract (Bestattungsvorsorgevertrag), by contrast, is an agreement with a funeral director in which you specify the type, scope and costs of your funeral during your lifetime. The pre-planning contract is purpose-bound and, when held in a trust account (Treuhandkonto), is protected from social welfare authority claims.

Summary

• The statutory death benefit (Sterbegeld) from health insurance funds has not existed since 1 January 2004. It is paid by neither statutory nor private health insurers.
• A death benefit is still available only to civil servants (under BeamtVG), bereaved families following workplace accidents (employer liability insurance associations, approximately 6,780 EUR in 2026) and holders of private accident insurance policies.
• Funeral insurance (Sterbegeldversicherung) is a private insurance product intended to cover funeral costs — insured sums of 5,000 to 15,000 EUR are typical.
• Consumer protection advocates view funeral insurance critically, as the premiums — particularly when taken out at a later age — can exceed the insured sum.
• Alternatives such as a funeral pre-planning contract (Bestattungsvorsorgevertrag) with a trust account often offer better protection and greater control over your personal wishes.
• Funeral costs may under certain conditions be deducted from your taxes — an aspect that should be considered as part of your financial planning.

Note: The figures and regulations stated in this article are accurate as of March 2026. Please verify current conditions with your insurance adviser or the relevant authority. For a social welfare funeral (Sozialbestattung), contact the social welfare office (Sozialamt) in your municipality.

Further Reading

• Funeral costs in Germany 2026 — how much does a funeral cost?
• Social welfare funeral — when costs are beyond reach
• Deducting funeral costs from your taxes 2026
• A death in the family — what to do: a step-by-step guide
• Creating a digital memorial page — preserving remembrance
• Funeral pre-planning contract — setting costs during your lifetime