Life insurance in the Netherlands: Complete guide for expats
Life insurance in the Netherlands is not compulsory, but many residents and expats choose it as a way to protect their families financially in the event of death. A suitable policy can help cover everyday living costs, repay outstanding debts, or reduce the financial strain on loved ones.
Life insurance in the Netherlands is not compulsory, but many residents and expats choose it as a way to protect their families financially in the event of death. A suitable policy can help cover everyday living costs, repay outstanding debts, or reduce the financial strain on loved ones.
For expats living abroad or supporting family members across borders, life insurance can be an especially important part of financial planning.
This guide provides general information only and does not constitute professional or financial advice. For guidance tailored to your personal situation, consult a licensed insurance specialist in the Netherlands.
Table of contents
- What is life insurance?
- Types of life insurance available in the Netherlands
- Life insurance requirements for expats in the Netherlands
- How much life insurance do you need?
- Life insurance costs and premiums in the Netherlands
- Buying life insurance in the Netherlands as an expat
- Employer-provided life insurance
- International life insurance vs local coverage
- Life insurance beneficiaries and international considerations
- Life insurance when moving countries
- Tax implications of life insurance in the Netherlands
- Life insurance and estate planning
- Common life insurance mistakes to avoid for expats
- Life insurance claims process
- Getting professional advice in the Netherlands
- Conclusion
- Helpful resources
What is life insurance?
Life insurance in the Netherlands (levensverzekering) is designed to provide financial protection for your chosen beneficiaries after your death. Beneficiaries are usually partners, children, or other close relatives, but policyholders are free to decide who receives the payout.
Depending on the policy, the benefit may be paid as a lump sum or in scheduled payments. Premiums are paid regularly while the policy is active.
Life insurance can help cover funeral expenses, outstanding loans, mortgage payments, or replace lost income. For expats, it can be particularly useful when dependents rely on a single income or live in another country.
Types of life insurance available in the Netherlands
The three most common life insurance options in the Netherlands are:
- Term life insurance (overlijdensrisicoverzekering – ORV)
- Whole life insurance (levenslange overlijdensrisicoverzekering)
- Funeral insurance (uitvaartverzekering)
Each type serves a different purpose and suits different financial situations.
Term life insurance
Term life insurance provides coverage for a fixed period, such as 10, 20, or 30 years. If the insured person dies during this term, the insurer pays the agreed amount to the beneficiaries. Once the term ends, the coverage stops.
This is the most widely used life insurance option in the Netherlands. It is often chosen to protect families during financially demanding periods, such as when raising children, paying off a mortgage, or running a business.
Premiums are generally affordable, and coverage can be structured in three ways:
- Level cover (gelijkblijvende dekking) – payout and premiums remain the same
- Linear decreasing cover (lineair dalend) – payout reduces gradually over time
- Annuity-based decreasing cover (annuitair dalend) – payout decreases in line with a mortgage balance
Whole life insurance
Whole life insurance provides coverage for the insured person’s entire lifetime, as long as premiums are paid. A payout is guaranteed whenever death occurs.
These policies are usually more expensive than term life insurance and are less commonly used. They may be suitable for higher-income households or estate planning purposes. Some policies include an investment or savings component that can accumulate value over time.
Advantages
- Guaranteed payout
- May include savings or investment elements
- Useful for estate planning
Disadvantages
- Higher premiums
- Less flexibility
- Higher cancellation fees
Funeral insurance
Funeral insurance is intended specifically to cover funeral expenses. Payouts are made shortly after death to ensure immediate costs are covered.
Common options include:
- Pre-arranged services (naturaverzekering)
- Funeral cost coverage (sommenverzekering)
- Cash payout policies (kapitaalverzekering)
Coverage amounts are typically lower than other life insurance types, often up to around €15,000. This option can be useful for expats who may want funeral arrangements handled abroad.
Life insurance requirements for expats in the Netherlands
Most expats who are legal residents of the Netherlands can apply for life insurance. Some insurers require applicants to be employed or self-employed and may restrict coverage lengths for those with temporary residence permits.
Health, age, medical history, smoking habits, and lifestyle factors influence premiums and eligibility. Many insurers apply age limits:
- Applications usually close between ages 65–70
- Term policies rarely extend beyond age 75
For example:
- Centraal Beheer – coverage generally ends at age 75
- Allianz – applications typically accepted up to age 65
Applicants complete a medical questionnaire and may need a medical exam depending on age, health, or coverage amount.
How much life insurance do you need?
The right coverage amount depends on your personal and family situation. Consider whether the goal is long-term income replacement or simply covering debts and funeral costs.
A basic calculation may include:
- Outstanding loans or mortgage balances
- Expected funeral expenses
- Income replacement (often 3–5 years of net salary)
Expats should also consider cross-border costs, such as dependents living abroad or repatriation expenses. Speaking with an insurance advisor is recommended for accurate planning.
Life insurance costs and premiums in the Netherlands
Premiums depend on several factors, including:
- Policy type and duration
- Insured amount
- Age and health
- Smoking status
- Occupation and hobbies
Premiums can range from a few euros per month to several hundred euros. Some insurers charge a one-time setup fee.
Many providers offer online premium calculators, including Allianz and Feather.
Buying life insurance in the Netherlands as an expat
Step 1: Choose coverage
Decide on the type of policy and coverage amount. Professional advice can help if you are unsure.
Step 2: Compare providers
Compare premiums, flexibility, cancellation terms, and expat services. Always verify that insurers are registered with:
- De Nederlandsche Bank
- Authority for the Financial Markets
Step 3: Apply
Applications are usually completed online and include health and personal details.
Step 4: Medical review
Some policies require a medical exam before approval.
Employer-provided life insurance
Some employers in the Netherlands include life insurance as part of employee benefit packages. Coverage is often linked to pension plans and may allow optional top-ups.
International life insurance vs local coverage
Local Dutch policies are usually cheaper and easier to manage but may require continued Dutch residency. International policies offer more flexibility for people who expect to relocate.
Local Dutch policies
- Lower premiums
- Regulated under Dutch law
- Residency restrictions may apply
International policies
- Global coverage
- Multi-currency options
- Higher premiums and administrative complexity
Life insurance beneficiaries and international considerations
Including beneficiaries abroad may involve additional requirements or fees. Ask insurers about payout procedures, taxes, and transfer options.
Services like Wise are often used for cross-border payments due to transparent exchange rates and lower fees.
Life insurance when moving countries
Many Dutch policies require continued residency. If you plan to move abroad, notify your insurer in advance. International life insurance may be more suitable for globally mobile individuals.
Tax implications of life insurance in the Netherlands
- Term life payouts are generally tax-free
- Investment-linked policies may be taxable under Box 3
- Inheritance tax may apply depending on beneficiary relationship
Cross-border payouts may trigger foreign tax obligations. Professional tax advice is recommended.
Life insurance and estate planning
Naming beneficiaries allows direct payouts, but does not automatically eliminate inheritance tax. Writing a will and consulting a tax advisor can help optimize estate planning.
Common life insurance mistakes to avoid for expats
- Not checking international validity
- Underestimating coverage needs
- Ignoring tax implications
- Failing to notify insurers of relocation
- Missing premium payments during moves
Life insurance claims process
Beneficiaries should notify the insurer as soon as possible. Required documents usually include:
- Death certificate
- Policy details
- Proof of identity and relationship
Claims are typically processed within 30 days. Disputes can be escalated to Kifid.
Getting professional advice in the Netherlands
Licensed insurance advisors and brokers can help you make informed decisions. Advisor credentials can be verified through the AFM register.
Conclusion
Life insurance is an important financial planning tool for expats in the Netherlands. Understanding the available options, costs, and cross-border implications can help ensure your family is protected. Professional advice is strongly recommended before committing to a policy.
Helpful resources
- Wise
- Dutch Association of Insurers
- Authority for the Financial Markets
- De Nederlandsche Bank
- Kifid
- Feather
- Allianz Life Insurance Calculator
For expats living abroad or supporting family members across borders, life insurance can be an especially important part of financial planning.
This guide provides general information only and does not constitute professional or financial advice. For guidance tailored to your personal situation, consult a licensed insurance specialist in the Netherlands.
Table of contents
- What is life insurance?
- Types of life insurance available in the Netherlands
- Life insurance requirements for expats in the Netherlands
- How much life insurance do you need?
- Life insurance costs and premiums in the Netherlands
- Buying life insurance in the Netherlands as an expat
- Employer-provided life insurance
- International life insurance vs local coverage
- Life insurance beneficiaries and international considerations
- Life insurance when moving countries
- Tax implications of life insurance in the Netherlands
- Life insurance and estate planning
- Common life insurance mistakes to avoid for expats
- Life insurance claims process
- Getting professional advice in the Netherlands
- Conclusion
- Helpful resources
What is life insurance?
Life insurance in the Netherlands (levensverzekering) is designed to provide financial protection for your chosen beneficiaries after your death. Beneficiaries are usually partners, children, or other close relatives, but policyholders are free to decide who receives the payout.
Depending on the policy, the benefit may be paid as a lump sum or in scheduled payments. Premiums are paid regularly while the policy is active.
Life insurance can help cover funeral expenses, outstanding loans, mortgage payments, or replace lost income. For expats, it can be particularly useful when dependents rely on a single income or live in another country.
Types of life insurance available in the Netherlands
The three most common life insurance options in the Netherlands are:
- Term life insurance (overlijdensrisicoverzekering – ORV)
- Whole life insurance (levenslange overlijdensrisicoverzekering)
- Funeral insurance (uitvaartverzekering)
Each type serves a different purpose and suits different financial situations.
Term life insurance
Term life insurance provides coverage for a fixed period, such as 10, 20, or 30 years. If the insured person dies during this term, the insurer pays the agreed amount to the beneficiaries. Once the term ends, the coverage stops.
This is the most widely used life insurance option in the Netherlands. It is often chosen to protect families during financially demanding periods, such as when raising children, paying off a mortgage, or running a business.
Premiums are generally affordable, and coverage can be structured in three ways:
- Level cover (gelijkblijvende dekking) – payout and premiums remain the same
- Linear decreasing cover (lineair dalend) – payout reduces gradually over time
- Annuity-based decreasing cover (annuitair dalend) – payout decreases in line with a mortgage balance
Whole life insurance
Whole life insurance provides coverage for the insured person’s entire lifetime, as long as premiums are paid. A payout is guaranteed whenever death occurs.
These policies are usually more expensive than term life insurance and are less commonly used. They may be suitable for higher-income households or estate planning purposes. Some policies include an investment or savings component that can accumulate value over time.
Advantages
- Guaranteed payout
- May include savings or investment elements
- Useful for estate planning
Disadvantages
- Higher premiums
- Less flexibility
- Higher cancellation fees
Funeral insurance
Funeral insurance is intended specifically to cover funeral expenses. Payouts are made shortly after death to ensure immediate costs are covered.
Common options include:
- Pre-arranged services (naturaverzekering)
- Funeral cost coverage (sommenverzekering)
- Cash payout policies (kapitaalverzekering)
Coverage amounts are typically lower than other life insurance types, often up to around €15,000. This option can be useful for expats who may want funeral arrangements handled abroad.
Life insurance requirements for expats in the Netherlands
Most expats who are legal residents of the Netherlands can apply for life insurance. Some insurers require applicants to be employed or self-employed and may restrict coverage lengths for those with temporary residence permits.
Health, age, medical history, smoking habits, and lifestyle factors influence premiums and eligibility. Many insurers apply age limits:
- Applications usually close between ages 65–70
- Term policies rarely extend beyond age 75
For example:
- Centraal Beheer – coverage generally ends at age 75
- Allianz – applications typically accepted up to age 65
Applicants complete a medical questionnaire and may need a medical exam depending on age, health, or coverage amount.
How much life insurance do you need?
The right coverage amount depends on your personal and family situation. Consider whether the goal is long-term income replacement or simply covering debts and funeral costs.
A basic calculation may include:
- Outstanding loans or mortgage balances
- Expected funeral expenses
- Income replacement (often 3–5 years of net salary)
Expats should also consider cross-border costs, such as dependents living abroad or repatriation expenses. Speaking with an insurance advisor is recommended for accurate planning.
Life insurance costs and premiums in the Netherlands
Premiums depend on several factors, including:
- Policy type and duration
- Insured amount
- Age and health
- Smoking status
- Occupation and hobbies
Premiums can range from a few euros per month to several hundred euros. Some insurers charge a one-time setup fee.
Many providers offer online premium calculators, including Allianz and Feather.
Buying life insurance in the Netherlands as an expat
Step 1: Choose coverage
Decide on the type of policy and coverage amount. Professional advice can help if you are unsure.
Step 2: Compare providers
Compare premiums, flexibility, cancellation terms, and expat services. Always verify that insurers are registered with:
- De Nederlandsche Bank
- Authority for the Financial Markets
Step 3: Apply
Applications are usually completed online and include health and personal details.
Step 4: Medical review
Some policies require a medical exam before approval.
Employer-provided life insurance
Some employers in the Netherlands include life insurance as part of employee benefit packages. Coverage is often linked to pension plans and may allow optional top-ups.
International life insurance vs local coverage
Local Dutch policies are usually cheaper and easier to manage but may require continued Dutch residency. International policies offer more flexibility for people who expect to relocate.
Local Dutch policies
- Lower premiums
- Regulated under Dutch law
- Residency restrictions may apply
International policies
- Global coverage
- Multi-currency options
- Higher premiums and administrative complexity
Life insurance beneficiaries and international considerations
Including beneficiaries abroad may involve additional requirements or fees. Ask insurers about payout procedures, taxes, and transfer options.
Services like Wise are often used for cross-border payments due to transparent exchange rates and lower fees.
Life insurance when moving countries
Many Dutch policies require continued residency. If you plan to move abroad, notify your insurer in advance. International life insurance may be more suitable for globally mobile individuals.
Tax implications of life insurance in the Netherlands
- Term life payouts are generally tax-free
- Investment-linked policies may be taxable under Box 3
- Inheritance tax may apply depending on beneficiary relationship
Cross-border payouts may trigger foreign tax obligations. Professional tax advice is recommended.
Life insurance and estate planning
Naming beneficiaries allows direct payouts, but does not automatically eliminate inheritance tax. Writing a will and consulting a tax advisor can help optimize estate planning.
Common life insurance mistakes to avoid for expats
- Not checking international validity
- Underestimating coverage needs
- Ignoring tax implications
- Failing to notify insurers of relocation
- Missing premium payments during moves
Life insurance claims process
Beneficiaries should notify the insurer as soon as possible. Required documents usually include:
- Death certificate
- Policy details
- Proof of identity and relationship
Claims are typically processed within 30 days. Disputes can be escalated to Kifid.
Getting professional advice in the Netherlands
Licensed insurance advisors and brokers can help you make informed decisions. Advisor credentials can be verified through the AFM register.
Conclusion
Life insurance is an important financial planning tool for expats in the Netherlands. Understanding the available options, costs, and cross-border implications can help ensure your family is protected. Professional advice is strongly recommended before committing to a policy.
Helpful resources
- Wise
- Dutch Association of Insurers
- Authority for the Financial Markets
- De Nederlandsche Bank
- Kifid
- Feather
- Allianz Life Insurance Calculator