If you die before reaching age 68, a lump sum death benefit becomes payable. The size of the lump sum death benefit depends on your age when you die.
Age |
Lump sum death benefit |
Under 45 years of age |
DKK 1,091,000 |
Under 55 years of age |
DKK 865,000 |
Under 68 years of age |
DKK 546,000 |
Reached age 68 years of age |
DKK 0 |
If you have not decided who should receive the payment, it will be made according to the beneficiary next of kin applying from 1 January 2008. According to the Danish Insurance Contracts Act’s section 105a your next of kin are in below-mentioned order:
- Your spouse/registered partner.
- Cohabitant, if you live together and have, expect or have had a child together, or you have lived together in a relationship comparable to a marriage for the last two years before the death.
- Descendants (children and grandchildren).
- Testamentary beneficiaries.
- Beneficiaries under an intestacy: parents, siblings, nieces and nephews, grandchildren, uncles and aunts.
There are no restrictions to who you can appoint as a beneficiary. You can also erase the beneficiaries – then the payment is made to the estate. You can read more here
The payment is exempt from taxes and dues. When the lump sum death benefit is paid to a spouse or registered partner, there is no estate tax payable. If payment is made to children and/or a cohabitant through more than 2 years, the estate tax accounts for 15 percent. On payment to others, the estate tax accounts for 36,25 percent (estate tax and additional estate tax).