Value Instead of Change: Why You Shouldn't Alter Your Old Insurance Contracts
6 Apr 2025
11
Minutes
Katrin Straub
Managing Director at nextsure
Considering modernising your old insurance policies? Often, it's wiser not to change old insurance contracts. Discover why legacy policies can be true treasures and how you can leverage their benefits.
The topic in brief and concise terms
Old insurance contracts, particularly those concluded before 2005 or 2008, often offer unbeatable guaranteed interest rates and advantageous terms that would be lost if switched.
Tax advantages, particularly for life insurance policies taken out before 2005, can be nullified by a cancellation or amendment.
A new health check for personal insurance (e.g. occupational disability) during a switch can lead to higher premiums or exclusions.
Hidden Treasures: Recognising the Essential Benefits of Old Contracts
Old insurance contracts can be significantly valuable. Many policies taken out before 2005 offer a guaranteed interest rate of up to four per cent.
A hasty switch nullifies this advantage. Some old contracts cover natural disasters, which are hardly insurable today.
The VVG reform of 2008 brought changes to obligations. Contracts from before this reform, if not adjusted, are more customer-friendly.
In the case of gross negligence, a complete loss of benefits does not always occur. A switch can weaken this advantageous position.
Particularly, life insurance policies from before 2005 enjoy tax privileges upon payout. Cancelling or altering them jeopardises these tax benefits.
It's often advisable to make old policies non-contributory instead of giving them up. These aspects illustrate why a thorough review before any decision is essential.
Capital Preservation Secured: Why Old Life Insurance Policies Are Often Unbeatable
Old endowment life insurance policies are often worth their weight in gold. Contracts from the 1990s yield a guaranteed interest rate of four percent.
Today's new contracts often offer only one percent or less. The compound interest effect over decades is a significant factor here.
Another point is the tax exemption for contracts before 2005. Earnings are tax-free if a term of twelve years is observed.
Cancelling a private pension insurance policy can lead to unexpected tax burdens. This also applies to life insurance policies.
The surplus participation was often more generous in older contracts. Older contracts can sometimes benefit more, even without a guarantee.
Switching means losing these rights that have been built up over years. A precise analysis of the contract conditions is therefore crucial before cancellation.
Optimising Disability Insurance: Leveraging the Strengths of Old BU Policies
Caution is advised with occupational disability insurance (BU). Older contracts may offer more favourable occupational group classifications.
Switching could lead to higher premiums. The health assessment is another critical factor.
With increasing age, a new health assessment becomes riskier. The old contract was based on your health condition at that time.
This protection is often indispensable. Cancelling the BU should be the last option.
Some older contracts have less strict referral clauses. The insurance can refer you to another occupation less frequently.
A new contract might offer worse conditions in this regard. A thorough review of the terms is necessary before making any decision.
The following five points often advocate for retaining an old BU policy:
Lower premiums due to previous health assessment and occupational classification.
No repeat health assessment with the risk of exclusions or surcharges.
Potentially better conditions, for instance, in terms of abstract referrals (which have become rarer).
Already acquired claims and contract durations.
Protection from future legislative changes that could affect new customers.
These five advantages can tip the balance in favour of not altering old insurance contracts.
Avoiding Legal Pitfalls: What You Need to Know About Contract Amendments
The Insurance Contract Act (VVG) was reformed in 2008. Contracts from before, not adjusted, are more advantageous for policyholders.
This particularly affects provisions regarding breaches of duty. A thoughtless switch can nullify these benefits.
Insurers may not change contracts without the customer's consent. Offers to switch coverage should be critically examined.
Insurers often aim to convert the contract to new terms that are more favourable for them. Changing the beneficiary designation is usually unproblematic. However, fundamental contractual changes are delicate.
Our expert tip: Do not let yourself be pressured. Advisors must provide comprehensive information about the disadvantages of a cancellation.
This includes the loss of guaranteed interest rates or tax benefits. Careful consideration is crucial in this respect.
Pay attention to these five points before considering a contract change:
Comparison of guaranteed benefits: Older contracts often offer higher guaranteed interest rates.
Tax aspects: Especially contracts from before 2005 can have tax advantages upon payout.
Health examination: In personal insurance, a new health examination is often disadvantageous.
Terms and conditions: Older terms may be more customer-friendly in individual cases, e.g., in obligations.
Cost structure: New contracts can exhibit higher initial and administrative costs.
These five considerations highlight the importance of a sound decision basis.
Your Path to Optimal Security: Actionable Options and Expert Advice
Do not change old insurance contracts; they are based on solid benefits. Three or four percent guaranteed interest rate is unbeatable.
Tax privileges, especially with policies before 2005, are significant. Such advantages are rare.
Before making any changes to a policy, you should make an exact assessment. What guarantees does your contract specifically include?
What are the current conditions? Dynamics in the old contract can be useful.
This helps maintain the value of your policy over the years.
An independent analysis of your situation is the first step. We at nextsure help you separate the wheat from the chaff.
We review your old contracts and show you which policies you should definitely keep. Often, a combination of old and new is the best solution.
Request an individual risk analysis now: Get your insurance situation checked free of charge and receive concrete optimization suggestions.
More useful links
The Gesamtverband der Deutschen Versicherungswirtschaft (GDV) provides facts and figures on the insurance portfolio in Germany for the year 2022.
The Deutsche Bundesbank offers its financial stability reports, which provide insights into the stability of the German financial system.
The Bundesfinanzministerium provides information on financial market stability and relevant policy measures.
FAQ
Was macht alte Versicherungsverträge so wertvoll?
Alte Versicherungsverträge zeichnen sich oft durch hohe Garantiezinsen (z.B. vier Prozent bei Verträgen aus den 90ern), steuerliche Vorteile (insbesondere bei Abschluss vor 2005) und potenziell günstigere Bedingungen (z.B. bei Obliegenheiten vor der VVG-Reform 2008) aus.
Sollte ich meine Berufsunfähigkeitsversicherung wechseln, wenn sie schon alt ist?
In der Regel nicht. Alte BU-Verträge wurden oft zu günstigeren Gesundheitskonditionen und Berufsgruppeneinstufungen abgeschlossen. Ein Wechsel erfordert eine neue Gesundheitsprüfung, was zu höheren Beiträgen oder Ausschlüssen führen kann.
Was passiert mit meinen Steuervorteilen, wenn ich eine alte Lebensversicherung ändere?
Wenn Sie eine Lebensversicherung, die vor 2005 abgeschlossen wurde, wesentlich ändern oder kündigen, können die ursprünglich garantierten Steuerbefreiungen für die Erträge verloren gehen. Jede Änderung sollte daher genau auf steuerliche Konsequenzen geprüft werden.
Mein Versicherer bietet mir an, meinen alten Vertrag in einen neuen, 'moderneren' umzuwandeln. Sollte ich das tun?
Seien Sie vorsichtig. Oftmals versuchen Versicherer so, Altverträge mit für sie ungünstigen Konditionen (hohe Garantien) loszuwerden. Ein neuer Vertrag hat meist niedrigere Garantien und unterliegt aktuellen, nicht immer besseren Bedingungen. Lassen Sie das Angebot unabhängig prüfen.
Wann könnte es doch sinnvoll sein, einen alten Vertrag anzupassen?
Eine Anpassung kann sinnvoll sein, wenn sich Ihre Lebensumstände drastisch geändert haben (z.B. deutlich höherer Absicherungsbedarf) und der Altvertrag dies nicht abdeckt. Auch bei reinen Sachversicherungen können neuere Tarife manchmal bessere Leistungen zu geringeren Preisen bieten. Eine Kündigung sollte aber immer die letzte Option sein.
Wie kann nextsure mir bei meinen alten Versicherungsverträgen helfen?
nextsure bietet eine kostenfreie individuelle Risikoanalyse. Unsere Experten prüfen Ihre bestehenden Altverträge, zeigen Ihnen deren Stärken und Schwächen auf und geben konkrete Optimierungsvorschläge, damit Sie keine wertvollen Vorteile verschenken.
