Kapitallebens
Kapitallebensversicherung, commonly abbreviated Kapitallebens, is a life insurance product that combines risk protection with a savings component. The policy pays a death benefit to beneficiaries if the insured dies during the term, and at maturity may provide a lump-sum capital payoff to the insured if they survive. The policy accumulates capital through regular premiums, part of which covers the risk premium and the rest is invested by the insurer to build a guaranteed component plus potential profits (überschussbeteiligung).
The typical contract specifies a guaranteed minimum interest on the savings portion, plus a discretionary surplus
Historical context: It became a popular long-term savings product in the 20th century in German-speaking Europe,
Regulation and alternatives: In many jurisdictions, capital life policies are subject to insurance law and tax