Market Overview Germany
The German secondary market for life insurance policies offers to consumers – policy owners who would like to terminate their policy prior to maturity – an attractive alternative in comparison to the surrender of the policy. By selling the policy on the secondary market, the policy owner usually receives a purchase price, which is higher than the current cash surrender value of the policy. At the same time, the policy owner keeps a reduced insurance coverage in case of death for free! This is a clear advantage compared to the surrender of a policy.
Since its inception in the early 2000’s, the German secondary market for life insurance has gained increasing popularity among market players such as consumer protection agencies, politics, media and large parts of insurants / consumers.
Those professional policy purchasers, who are members of the Bundesverband Vermoegensanlagen im Zweitmarkt Lebensversicherungen e.V. (BVZL), have committed to comply with strict quality criteria and codes of practice in order to enable active consumer protection. [LINK zu Verbraucherleitfaden] Companies, which act as policy purchasers on the German secondary life insurance market and which are not member companies of the BVZL should therefore be approached by consumers only very carefully!
German life insurance companies – with only a few exceptions – appreciate the work of the BVZL and cooperate very closely and constructive with the member companies of the BVZL.