When does term life insurance pay?
Under pure term life cover, the insured event occurs on the death of the insured person. The agreed sum, term and valid policy status remain decisive.
Official RIS decision →Case law
Austrian Supreme Court decisions explained clearly.
Verified decisions on term life insurance, beneficiaries, vinkulierung and health disclosures.
Term life insurance
Term life insurance
Selected verified decisions with practical context.
Beneficiary designation must be clear
The Court considered the interpretation of a death-beneficiary clause. Clear designation and regular updates help prevent disputes between relatives and the estate.
Official RIS decision →The beneficiary claim arises on the insured event
A revocably designated beneficiary generally acquires the claim when the insured event occurs. Changes must therefore be made in time and documented.
Official RIS decision →Insurance proceeds and the estate
Whether life-insurance proceeds fall into the estate depends in particular on the policy wording, beneficiary designation and contractual structure.
Official RIS decision →Vinkulierung usually operates as a payment block
Without a broader agreement, vinkulierung typically operates as a payment block in favour of the creditor and is not automatically an assignment.
Official RIS decision →Pledge despite vinkulierung
Vinkulierung does not necessarily prevent an effective pledge of the life-insurance claim. Credit security should therefore be documented clearly.
Official RIS decision →Incorrect health information before contract conclusion
Even slight negligence may matter in a breach of the pre-contract disclosure duty. Health questions should be answered fully, truthfully and with documentation.
Official RIS decision →Financial support for third parties on death
Term life insurance primarily provides financial support for third parties after death, making the sum insured, term and beneficiary designation especially important.
Official RIS decision →Important note
The summaries do not replace individual review.
The full judgment, the individual policy and the facts remain decisive.