Life insurance under the microscope: high costs, low returns!

Life insurance under the microscope: high costs, low returns!

Private pension provision is becoming increasingly important, especially in view of demographic developments in Germany. Many people rely on supplementary pensions to ensure their financial security in old age. A current study by Stiftung Warentest has now shed light on the profitability of life insurance and shows that the expectations of many insured people are often disappointed.

A total of 14 classic pension insurance policies were tested. The results reveal that despite the high contributions, only low guaranteed pensions are often paid out. So there is loud Mercury no provider rated as very good; Only three tariffs received the grade “good”. What is worrying is that five providers offer guaranteed payouts below the level of deposits made.

Details of the investigation

An example from a model customer illustrates the problem: She paid in 200 euros a month over a period of 30 years, which corresponds to a total of 72,000 euros. However, five providers guarantee less than this amount, while only three guarantee the full amount. Hannoversche Versicherung particularly stands out, receiving a “good” rating and offering a guaranteed payout of 79,966 euros, which corresponds to 111% of deposits. However, if the customer wants to get the full amount back, she would have to live to be 92 years old, which shows the unattractiveness of this option.

Stiftung Warentest also named the provider Europa as the test winner because it enables particularly positive returns thanks to its low costs. The Hannoversche took second place, but had weaknesses in the flexibility and transparency of its offers.

Pension gaps and gender issues

Women are particularly affected by the problem as they often receive lower statutory pensions. This is often due to the resulting more frequent care work. Financial experts therefore advise women to make private provisions early on in order to close pension gaps.

Private pension provision in Germany is traditionally covered by life insurance companies such as Allianz, R+V and Debeka. These providers offer a wide range of retirement provision products that offer guaranteed interest during the savings phase as well as guaranteed pensions in the payout phase. However, the low interest rates of the last few years have caused problems for many life insurers, so that classic variants are hardly offered anymore test.de reported.

Advantages and disadvantages of life insurance

The analysis of private pension insurance shows both advantages and disadvantages. A key advantage is the ease of planning and the low tax burden on pensions. Insured persons also have the freedom to choose between a lump sum payment and a lifelong pension. However, the high costs, especially in the first years of the contract, are a significant disadvantage. There are often potential losses in the event of early termination and the chances of a return are low.

Alternative models, such as unit-linked pension insurance, enable an individual choice of funds and offer potentially higher return opportunities, but also a higher investment risk. At a time when flexible investment structures are increasingly in demand, consumers should carefully consider their options.

Overall, it can be said that many life insurance owners are currently dissatisfied with the returns they have achieved. Forward-looking planning and timely discussion of the issue of private pension provision are more important than ever today.