Cover on death

The insurance cover ensures that your family has the financial means to move on with their lives in case of your death. This may make it easier for the family to remain in their home or keep the car.

You can see the insurance covers already included in your pension scheme in Netpension.

It is up to you who gets the benefits, and in most cases your beneficiaries are free to decide whether the benefits are to be paid out as a lump sum or in smaller portions. Most people choose a lump sum payment.

Does your cover on death fit your life situation?

If you complete a Pension Check, you can see what options you have to adjust your coverage. You can also see whether your pension scheme follows our recommendations.

Start your Pension Check

1,1 million Danes do not know who will receive their pension benefits if they die before their retirement.
One in eight Danes have not provided sufficient cover for their family to, for example, remain in their home for a period of time.

Facts about the insurance cover

  • Who can take out the insurance?

    Anyone who wants to provide financially for a spouse, partner or children can take out the insurance cover. It is up to you whether you want to take out the cover individually or as part of your pension scheme. To set up your insurance cover, you must provide satisfactory health information.

  • Price

    The price of the insurance cover depends on your desired coverage. The price is also affected by the following conditions:

    • Your age
    • Whether you have a pension scheme with us
    • Whether you are a personal customer or have a company pension scheme 
    • Whether your pension scheme is optional or it has been set up by your employer
    • The duration of your insurance cover

    If you complete a Pension Check, you can see what options you have to adjust your coverage and the price of such adjustment.

  • Who will receive your pension benefits?

    It is up to you who will receive your pension benefits. In pension terminology, these are your beneficiaries.

    If you want your pension benefits to be paid out to your next of kin, the priority will be as follows: 

    • Your spouse, your registered partner or your cohabitant, the latter if he or she meets certain special requirements
    • Your children and your grandchildren
    • Any heirs named in your will
    • Your heirs under the Danish Inheritance Act
  • Payout and tax

    Payout with tax relief for your contributions:

    • Your beneficiaries can have your benefits paid out as a lump sum or in smaller portions. Benefits paid out as a lump sum are subject to 40 % taxation. Otherwise, the benefits will be taxed as personal income for your beneficiaries. 

    Payout without tax relief for your contributions: 

    • You can also choose to set up an insurance cover free of taxation, and the benefits will be tax-free. 
  • Danica contacts beneficiaries on death

    The Danish Civil Registration System (CPR) will automatically notify Danica in case of death. We will also receive information on any surviving spouse, who we will contact directly.

    If there is no surviving spouse, we will send a form to the estate, which must be completed by the family. We will send the form by post as we do not have any information on the deceased's family. When we receive the completed form, we will contact the family.

Child's annuity

With a child’s annuity, you can secure your children financially if you die before they come of age. In case of your death, your child will receive a monthly benefit payment for an agreed period of time, but not later than until your child reaches the age of 24. 

You need to set up a child's annuity for each child you want to cover. Benefits will be treated as personal income for the child. If your child's income is below the minimum taxable rate, the benefits will not be taxed. 

If you want to learn more about child’s annuity, feel free to contact us on +45 70 11 25 25.

A lot can happen in a year. Does your pension scheme fit your current life situation?