Maturity Sum – Concept, Legal Foundations, and Areas of Application
Die Maturity Sum is a term in German law, which is particularly significant in connection with banks, home savings contracts, as well as life insurance and other types of capital investments. It refers to a specific payout amount that becomes due at a contractually agreed upon date (the so-called “maturity date”) and is paid out to the beneficiary. The maturity sum is closely linked to the topics of accumulation processes, asset formation, contract termination, and legal frameworks. This article examines the maturity sum from a comprehensive legal perspective.
Definition and Differentiation of the Maturity Sum
Die Maturity Sum is – depending on the contract type – the amount due at a specific contractually agreed date, which usually consists of the sums paid in up to that point as well as accrued interest, surplus shares, or earnings. The term is frequently found in retirement products, savings contracts, and certain types of insurance, whereby its exact meaning depends on the context of the particular contract.
Distinction from Other Legal Terms
The maturity sum differs from terms such as the surrender value or the maturity benefit. While the surrender value can already be requested before the contract “matures,” the maturity sum is always tied to reaching a contractually defined date or event. The maturity (final maturity) primarily describes the date, whereas the maturity sum specifies the precise payment obligation.
Maturity Sum in the Context of Various Types of Contracts
Home Savings Contracts
In the context of a home savings contract the maturity sum refers to the amount of money that may be paid out to the contracting party once allocation maturity (the agreed savings amount) is reached. This consists of one’s own deposits, any premiums granted (e.g., housing construction premium), and accrued savings interest.
Life Insurance Policies
Bei capital-forming life insurance policies in these, the maturity sum is the final amount due at the expiry of the insurance policy. It results from the accumulated premiums, guaranteed interest, and potentially profit participation. For annuity insurances, the amount may alternatively be converted into an annuity.
Fixed-Term Deposit and Savings Contracts
With fixed-interest savings contracts or term deposits (e.g., fixed-term deposits), the final payout is often referred to as the maturity sum. It is also clearly defined in the contract and, in addition to the accumulated principal, generally includes the interest earned up to that point.
Bonds and Debentures
In contexts such as bonds, the maturity sum refers to the repayment amount that is to be paid to the creditor after the agreed term has expired.
Legal Foundations of the Maturity Sum
Statutory Regulations
The maturity sum as a legal term is not expressly regulated by statute, but arises from the principle of contractual freedom, the German Civil Code (BGB), as well as special statutory provisions depending on the type of contract:
- §§ 305 et seq. BGB (General Terms and Conditions): This covers conditions in standard contracts that regulate the establishment and calculation of the maturity sum.
- Insurance Contract Act (VVG): Contains comprehensive provisions on benefit calculation, maturity, and the information obligations of insurance companies upon lapse of life insurance policies.
- Building Savings Banks Act (BauSparkG): Regulates the legal framework for payouts under home savings contracts.
- Capital Investment Code (KAGB): Applies where investment funds are concerned.
Contractual Aspects
The amount and due date of the maturity sum are primarily determined by the contractual agreements. In the general terms and conditions of the respective financial institutions, the calculation, maturity date, and payment procedures are specified in detail. If the actual payment of the maturity sum deviates from the contractual agreements, claims for damages or rights of rescission may arise.
Tax Treatment
The payout of the maturity sum may be subject to income tax, for example, in the case of life insurance or fund investments. Tax liability is governed by § 20 EStG (income from capital assets) and, if applicable, § 22 EStG (other income). In some cases, allowances, exceptions, or specific benefits apply, particularly for older contracts or contracts with minimum duration and premium requirements.
Consumer Protection and Right of Withdrawal
For contracts involving consumers, the provisions on distance selling, information obligations, and the right of withdrawal must be observed. Inadequate or incorrect information regarding the calculation or maturity of the maturity sum can lead to extended withdrawal rights.
Process and Due Date of the Maturity Sum
Conditions for Maturity
The maturity sum becomes due once all the conditions specified in the contract (such as completion of the term, achievement of savings targets, or possibly the occurrence of a specific event) have been met. In the insurance sector, this is typically the end of the agreed insurance period; in home savings, the point at which the agreed maturity is reached.
Payment Modalities
The payout is generally made to the beneficiary named in the contract. In the event of assignments, attachments, or pledges, the statutory provisions securing the rights of third parties must be observed.
Legal Disputes and Jurisprudence Regarding the Maturity Sum
Discrepancies in Calculation
If there are differences regarding the calculation or payment of the maturity sum, the underlying contract and its interpretation under §§ 133, 157 BGB are decisive. Courts regularly address questions regarding the transparency of contract terms, proper disclosure of information, and any obligations for additional contributions.
Decisions of the Federal Court of Justice (BGH)
The Federal Court of Justice has issued several decisions on the design of insurance terms and transparency in the calculation of maturity benefits – and thus the maturity sum. Particularly relevant are judgments on the complete presentation of the calculation basis and on proper disclosure to policyholders (§§ 1 VVG old/new version, information obligations).
Final Assessment and Significance of the Maturity Sum
The maturity sum is a key payout amount in numerous capital investment and pension contracts in Germany. The legal framework arises mainly from the underlying contractual documents and the relevant statutory regulations. Of particular importance are clear and transparent contractual provisions and the fulfillment of all information obligations towards the consumer. Due to its regular economic importance, the maturity sum is often the subject of legal disputes and further regulatory clarification.
References and Further Legal Sources
- German Civil Code (BGB)
- Insurance Contract Act (VVG)
- Building Savings Banks Act (BauSparkG)
- Capital Investment Code (KAGB)
- Income Tax Act (EStG)
- Publications of the Federal Financial Supervisory Authority (BaFin)
- Commentaries on contract law and consumer protection
Due to its deep legal underpinnings and broad range of applications, the maturity sum is an essential term in German law in the context of contract design, wealth formation, and dispute avoidance.
Frequently Asked Questions
What legal requirements must be met to claim the maturity sum payout?
The payment of a maturity sum generally requires that the entitled claimant has reached the age stipulated by the contract or law – usually legal age, meaning the completed 18th year of life. In addition, the insurance policy or any other underlying agreement sets out specific conditions, such as presenting a valid identification document to verify date of birth, possibly submitting additional proof (such as a certificate of education), and reliable proof of the claimant’s identity. In many cases, the consent of all legal guardians must be obtained if the payout is requested before the age of majority (e.g., in the case of premature disposal in accordance with contractual clauses). It is also common that any existing attachments or assignments in favor of third parties must be observed and may partially or fully prevent a payout. It is advisable, particularly where clarity is lacking, to review the insurance contract and the general terms and conditions (AGB) carefully and seek legal advice if in doubt.
How is the legal claim to the maturity sum governed in the case of deceased insured persons?
If the insured person dies before the maturity of the maturity sum, the concrete contractual agreements apply. Generally, payment in the event of death is governed by separate provisions (e.g., payment of a death benefit or contract termination). If there is no specific provision for the event of death, the contract benefit usually becomes part of the estate. In such a case, the legal or testamentary heirs are entitled, unless a beneficiary for the case of death has been named. Heirs must provide a certificate of inheritance or other suitable proof to make the claim. If beneficiaries exist, they have priority in asserting the claim. A payout outside the formal legal process is only considered in exceptional cases, for example if an insurer accepts special family arrangements.
Is the paid maturity sum subject to statutory deductions or taxes?
Whether and to what extent the maturity sum is subject to income tax or other deductions depends on various factors. A key consideration is, among other things, whether it is an insurance benefit, an annuity or savings investment, or another investment product. Classic maturity sums from life insurance policies are considered income from capital assets as of 01.01.2005 and are therefore subject to income tax – exceptions apply, for example, if the contract was concluded before the end of 2004 and the benefit is paid out after at least twelve years’ term and after completion of the 60th year of life (§ 20 EStG). Social security contributions generally do not have to be paid. Any potential garnishments will be deducted by the insurer upon presentation of a valid title. Additional deductions such as fees or processing costs may apply depending on the product and should be checked in the particular contract.
What happens to the maturity sum in the event of seizure or insolvency proceedings involving the beneficiary?
In the case of ongoing seizure or insolvency proceedings, the maturity sum may generally be subject to creditors’ claims, unless express attachment protection for the specific use of the sum (e.g., for educational purposes) is prescribed by law or contract. Insurance payments, unless classified as so-called exempt assets according to § 850 et seq. ZPO, are generally subject to attachment. In case of the beneficiary’s insolvency, the claim to payment of the maturity sum is included in the insolvency estate, unless it concerns a purpose-bound, non-attachable social benefit or a certain amount exempted from attachment as per § 850c ZPO. The legal framework can vary in individual cases, and specialized legal advice should be sought if necessary.
Can minors legally access the maturity sum, and if so, under what conditions?
A payout of the maturity sum can also be made to minors in exceptional cases, provided that this is expressly stipulated in the contract or approved by legal representatives. Generally, parental custody applies until the age of majority, meaning the parents act as legal representatives. Payment directly to the minor is usually not possible. If the sum is to be paid out early (e.g., to finance education), the consent of all persons with parental authority is required, and if the sum is substantial, the approval of the family court in accordance with § 1643 BGB. Special safeguards also apply in such cases to prevent the improper disposal of large sums.
What time limits and statutes of limitation apply to legal claims to the maturity sum?
Claims for the payout of the maturity sum are subject to the general civil law limitation periods and, where applicable, special statutory time limits. Under German law, claims arising from insurance contracts typically become time-barred in accordance with § 195 BGB three years after they are first enforceable (that is, usually upon reaching legal age or the payment date specified in the contract), with the limitation period beginning at the end of the calendar year in which the claim could first be asserted. The limitation period may be suspended, for example, due to negotiations regarding the claim requirements or limitation-inhibiting legal actions. In special cases, such as delayed performance by the insurer, additional legal remedies can be employed. It is therefore advisable to review and assert claims promptly once due.
What legal options exist in the event of disputes concerning the maturity sum?
If there are disagreements regarding the payout or entitlement to the maturity sum, several legal avenues are available. First, an attempt should be made to resolve the dispute through the contractually agreed complaints and clarification procedure with the insurer or bank. If this is unsuccessful, arbitration via the official ombudsman offices for insurance or finance can be sought. If the dispute escalates, the claim can be asserted in civil courts (§ 13 GVG). For legal proceedings in insurance matters, jurisdiction often lies with the local district court. In complex cases, it is advisable to consult a specialist lawyer. Judicial clarification is particularly warranted when there are significant doubts about the interpretation of the contractual documents or eligibility for the claim.
