Simply canceling your insurance now is almost always the worst idea. But there are alternatives. That's why the Finanztip financial guide shows you which contract exit is worth it for whom.

1. Sell insurance

Who it's worth it for: If you need your insurance money short-term and permanently, you should try selling your insurance first. There are special buyers for this. The closing bonus (if any) from your insurance is forfeited or transferred to the buyer. But he involves you in this. That's why you often get a small percentage more from a buyer than you would from your insurer if you canceled.

2. Loan insurance

Who is it worth it for? Do you only temporarily need a large sum of money? Then it would be a shame to terminate the contract completely, especially if you still have an old insurance policy with guaranteed higher interest rates. In this case, you can borrow temporarily according to the contract. This means that you get a loan with your contract as collateral. However, the interest you must pay is greater than the interest rate in your contract. Then, as with any loan, you suffer a loss. Therefore, only use this option if you absolutely need the money and can pay it back quickly.

3.Make insurance free

Who it's worth it for: This option is an option if you can no longer or no longer want to pay your insurance premiums for a certain period of time. You can then leave the insurance suspended during this period, that is, simply inform the insurer and stop paying premiums. However, this is not recommended as a permanent situation, as administrative costs still arise and cancellation fees may also occur. However, you will continue to receive interest during the contribution exemption.

4. Cancel insurance

Who is it worth it for: almost no one. Termination should always be your last option for older contracts. It is the most expensive way to get out of the contract. Because in the first years part of your contributions only cover closing costs. And like all costs, you won't get them back. This means: if you cancel, you will usually receive less than what you paid. In addition, any surpluses from the remaining term and the final bonus will also be lost. Therefore, cancel your previous contract only in case of emergency.

But: If you are not happy with a contract you have recently entered into, sometimes it may make sense to bite the bullet and terminate it. This will cost you a loss, but investing even more money in an expensive and/or bad product makes even less sense.

The best way to avoid the situation of needing a lot of money urgently is to have a well-filled emergency fund (3-6 net monthly salaries) in your checking account.

You can read all the details about the four options in the financial advice guide.