Life Insurance in the Netherlands: What Expats Should Know
Thinking about life insurance as an expat in the Netherlands? While not always top of mind, it can be an essential part of financial planning, especially if you have dependents or a mortgage.
Types of Life Insurance in the Netherlands
There are two main types of life insurance (levensverzekering):
- Term life insurance (tijdelijke levensverzekering): Covers a specific period, often used to cover the duration of a mortgage or until children become financially independent.
- Whole life insurance (levenslange verzekering): Offers lifelong coverage and can be used for inheritance planning.
Do Expats Need Life Insurance?
It depends on your situation. You may want life insurance if you:
- Have a Dutch mortgage
- Want to provide financial security for your family
- Run a business or have business debts
Many banks in the Netherlands require life insurance if you take out a mortgage with them. It ensures that the loan can be repaid if one partner passes away.
How to Apply
Life insurance is offered by most Dutch banks and insurers. You'll typically need to fill out a health questionnaire and may undergo a medical check for higher amounts. Some well-known insurers include:
- ABN AMRO
- Nationale-Nederlanden
- Centraal Beheer
- Aegon
Tax Benefits
Depending on the structure of your policy, some life insurance premiums or payouts may have tax implications. It’s best to consult a financial advisor to understand your situation.
Language Barrier?
Many Dutch insurers offer English-language support, and international brokers can assist with comparing policies across providers.
Final Thought
Life insurance isn’t mandatory in the Netherlands, but it’s worth considering if you’re settling down, buying property, or raising a family here.