If you’ve moved to Denmark to work, study, or settle long-term, you’re probably already covered by the generous Danish healthcare and welfare system. But one area where the state doesn’t step in is life insurance, especially when it comes to financially protecting your loved ones in case the worst happens. That’s where you may want to consider a life insurance in Denmark.
Many Danes have some form of life insurance, often through their employer’s pension scheme. But as a foreigner, it’s not always clear what you’re covered for, or if you need to arrange additional protection on your own. In this guide, I’ll help you understand how life insurance in Denmark works, what options are available for you as a foreigners, and what to look for based on your work and family situation.
If you are looking for detailed guides on issues related to insurances in Denmark, you may want to check out my two other guides, where I cover these topics in detail:
- Best Health Insurance for Foreigners in Denmark
- Best Critical Illness Insurance in Denmark for Foreigners
What Is Life Insurance in Denmark?
In Denmark, life insurance (livsforsikring) typically pays out a tax-free lump sum to your beneficiaries if you pass away. This money can help your family cover immediate expenses, maintain their lifestyle, or simply reduce financial stress during a difficult time.
Generally, there are two main ways foreigners can access life insurance in Denmark:
- Through a pension-linked policy that comes with full-time employment
- Through a private life insurance plan you purchase yourself
While both serve the same basic function, to provide a payout in the event of death, there are important differences in how they work, how much control you have, and what happens if you leave Denmark or change jobs.
I’ve made this comparison table to break it down for you:
| Feature | Employer-Linked (via Pension) | Private Life Insurance |
|---|---|---|
| How you get it | Included in job’s pension scheme | Purchased directly from insurer |
| Eligibility | Must have full-time employment in DK | Anyone with a CPR number and residence |
| Customizable coverage | Often fixed or limited options | Fully customizable (amount, term, etc.) |
| Cost | Often subsidized by employer | You pay full premium |
| Continues if you leave job? | No — ends when employment ends | Yes — stays with you as long as you pay |
| Language support | Limited — not always clear to expats | Varies by provider, but often more accessible |
| Best suited for | Long-term employees in Denmark | Freelancers, students, or families needing tailored coverage |
As a foreigner in Denmark, you may not even be aware you have employer-linked life insurance, so it’s worth asking your HR department or pension provider. If you’re self-employed, a freelancer, or in between jobs, a private policy is likely your only option.
What to Consider When Choosing a Life Insurance Plan
Ideally, choosing a life insurance policy in Denmark should not just be about picking the cheapest plan available, but instead be about making sure the people you care about will be protected in the way you intend. This applies to whether that’s your spouse, children, or extended family abroad.
Here are some important factors to keep in mind when comparing life insurance options as a foreigner:
Coverage Amount
Think about how much money your dependents would need if you passed away unexpectedly. Do they rely on your income? Would they need help covering rent, school, or loans? While policies pf life insurance in Denmark can be modest, foreigners with family abroad often choose higher amounts to ensure financial stability back home.
Duration of the Policy
Most life insurance policies in Denmark are term policies, which means that they last for a fixed number of years (e.g. 10, 20, or 30). Thus, I would recommend you choose a term that matches your current needs: for instance, until your kids are grown, or until a mortgage is paid off. Some policies tied to pensions last only as long as your employment.
Portability
This is especially important for foreigners: what happens if you move to another country? Some employer-linked life insurance policies end when you leave the job or the country, while many private insurers offer plans that can continue (or be cashed out) even if you relocate.
Premium Costs
The cost of your plan will likely depend on your age, health, and the amount insured. If you’re young and healthy, premiums can be quite low, but rates vary significantly. A good idea is thus to consider whether your budget allows for monthly premiums now and in the future.
Pre-Existing Conditions
Some policies require health questionnaires or medical checks. Make sure you understand what conditions are covered or excluded, and don’t assume coverage will be automatic. If you’ve recently arrived in Denmark, your medical history may need to be provided from your home country.
Language and Support
Many insurance providers in Denmark operate primarily in Danish. If you’re not fluent, look for insurers that offer contracts and customer service in English, or work with a broker who can explain the details.
If you’re unsure about where to start your search, I recommend using this insurance comparison platform to find the right life insurance for your needs. It’s free, non-binding, and you’ll receive up to three offers from different providers. This makes it easier to compare prices and coverage side by side. A quick check can often reveal if you’re overpaying or missing better options.
Understand Life Insurance in Denmark
Understanding life insurance trends in Denmark can give you helpful context, especially when deciding if additional private coverage makes sense for you.
Here are some relevant figures:
- According to Insurance & Pension Denmark, 2023, over 80% of Danes have some form of life insurance, most commonly tied to their pension schemes.
- Among foreigners living in Denmark, less than 40% are aware of whether they’re covered through their employer or not.
- A 2022 report by Danica Pension showed that the average life insurance payout in Denmark was around 1.1 million DKK, while most private policies offered coverage between 500,000 to 2 million DKK.
- The most common reason for purchasing additional life insurance is to protect family members financially, followed by covering outstanding debts such as mortgages or loans.
- According to a 2023 survey from Forbrugerrådet Tænk (the Danish consumer council), transparency and clarity were top concerns for foreigners buying insurance in Denmark, especially when dealing with Danish-language contracts.
These numbers highlight a key point: while Denmark’s social welfare model offers a safety net, it often doesn’t extend far enough to replace lost income or support dependents long-term, particularly if your family is outside Denmark. That’s where personal life insurance becomes essential.
FAQ About Life Insurance in Denmark for Foreigners
Do I need life insurance in Denmark if I’m already covered by the public system?
Denmark’s public welfare system does not include life insurance. It may provide support to your spouse or children through survivor’s benefits, but this is limited and not guaranteed to cover their financial needs. If you have dependents — especially abroad — private life insurance is worth considering.
Is life insurance mandatory in Denmark?
No, life insurance is not required by law. However, many employment contracts include it as part of the pension package, and some mortgage lenders recommend it when buying property.
Can foreigners get life insurance in Denmark?
Yes, both EU and non-EU residents living in Denmark can take out life insurance, as long as they have a CPR number and residency. Some insurers may ask for additional documents or a Danish address.
Is life insurance included in my pension plan?
Often, yes. Many Danish employers include a group life insurance policy with your pension. However, coverage levels are usually modest (e.g. 500,000–1 million DKK), and the policy may end if you leave your job. It’s wise to check the details with your employer.
How long does a typical life insurance policy last?
Most life insurance policies in Denmark are term policies, which last for a specific number of years (e.g. 10, 20, or until a certain age). Some are linked to your employment or pension and expire when you retire or switch jobs.
What happens to my life insurance if I move out of Denmark?
This depends on the provider. Some private insurers offer portable policies that remain valid even if you leave the country, while others terminate coverage. Always ask about portability before signing a policy, especially if your stay in Denmark may be temporary.
Do I need a health check to apply?
Not always. Many insurers only require you to complete a health questionnaire. However, if you’re applying for a high coverage amount or have pre-existing conditions, a medical exam or extra documentation may be required.
Can I name beneficiaries outside Denmark?
Yes, you can typically name beneficiaries in any country. Be sure to list them clearly in your policy and update it if your family situation changes. Some insurers may request additional identification for beneficiaries abroad.
